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Point 1: Stone, Inc. began the year with a balance in retained earnings of $54,000. The company had 12,700 shares of $2 par common stock outstanding. During the year, it reported sales of $360,000 and expenses of $312,000. During June, Stone declared and paid a $1.00 cash dividend. On December 18, Stone declared a $0.60 cash dividend to be paid the following January 14.
Question 1: Determine the balance of retained earnings at December 31.
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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