Answer Happy

2019 revenues were $77,500.
2019 net income was $33,900.
Dividends declared and paid during 2019 totaled $5,700.
Total assets at December 31, 2019 were $217,000.
Total stockholders' equity at December 31, 2019 was $123,000.
Retained earnings at December 31, 2019 were $83,000.
Which of the following is not correct?
A) 2019 expenses were $43,600.
B) Total liabilities at December 31, 2019 were $94,000.
C) Retained earnings increased $33,900 during 2019.
D) Common stock at December 31, 2019 was $40,000.
Answer: C
Explanation: Total assets ($217,000) = Total liabilities + stockholders' equity.
Total liabilities = Total assets ($217,000) − Stockholders' equity ($123,000) = $94,000.
Stockholders' equity ($123,000) = Common stock + Retained earnings ($83,000).
Solve for Common stock = $40,000.
Net income ($33,900) = Revenues ($77,500) − Expenses.
Solve for Expenses = $43,600.
Retained earnings increased by net income ($33,900) − dividends ($5,700).
Retained earnings increased by $28,200.