Reference no: EM132759893

The information below pertains to M&N Phones for the year ended Dec. 31, 2014.

Cash $280,000

Cost of Goods Sold $68,000

Revenues $250,000

Retained Earnings, Jan 1, 2014 $422,000

Common Stock (Paid In Capital) $10,000

Unearned Revenues $21,000

Salaries and Wages Expense $70,000

Machinery $180,000

Accounts Receivable, net $18,000

Depreciation Expense $15,000

Prepaid Rent expense $5,000

Income Tax Payable $3,400

Rent Expense $3,000

Dividends Declared & Paid $7,000

Gain from sale of L.T. Asset $4,100

Accumulated Depreciation $47,000

Bad Debt Expense $2,000

Income Tax Expense $22,000

Required: Use the above to answer the following questions

Problem a) Calculate the net income for the period and find the balance of retained earnings on Dec. 31, 2014.

Problem b) Determine the total current assets of M&N as of Dec. 31, 2014.