Reference no: EM131929316
Question - Eddie Zambrano Corporation began operations on January 1, 2011. During its first 3 years of operations, Zambrano reported net income and declared dividends as follows.
Net income Dividends declared
2011 $41,400 $ -0-
2012 134,500 56,700
2013 169,200 56,300
The following information relates to 2014.
Income before income tax $234,400
Prior period adjustment: understatement of 2012 depreciation expense (before taxes) $30,100
Cumulative decrease in income from change in inventory methods (before taxes) $42,100
Dividends declared (of this amount, $30,100 will be paid on January 15, 2015) $113,000
Effective tax rate 40%
Prepare a 2014 retained earnings statement for Eddie Zambrano Corporation. (List items that increase retained earnings first.)
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