Car and Auto Sisters had retained earnings of $18,000 on the balance sheet but disclosed in the footnotes that $3,000 of retained earnings was restricted for plant expansion and $1,000 was restricted for bond repayments. Cash of $2,000 had been set aside for the plant expansion. How much of retained earnings is available for dividends?

The correct answer is $14,000.

Explanation:

According to the scenario, the given data are as follows:

Total Retained earning = $18,000

Restricted for plant expansion = $3,000

restricted for bonds repayment = $1,000

So, we can calculate the remaining retained earning by using following formula:

Remaining Retained earning = Total retained earning - ( Restricted for plant expansion + restricted for bonds repayment )

by putting the value, we get

Remaining retained earning = $18,000 - ( $3,000 + $1,000)

= $14,000

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o