Benedict Company Compiled the Following Financial Information as of December

Benedict Company compiled the following financial information as of December 31 2022: $$\begin{array} { l r } \text { Service revenue } & \$ 1,120,000 \\\text { Common stock } & 240,000 \\\text { Equipment } & 320,000 \\\text { Operating expenses } & 1,000,000 \\\text { Cash } & 280,000 \\\text { Dividends } & 80,000 \\\text { Supplies } & 40,000 \\\text { Accounts payable } & 160,000 \\\text { Accounts receivable } & 400,000 \\\text { Retained earnings, } 1 / 1 / 22 & 600,000\end{array}$$ Benedict's retained earnings on December 31 2022 are

A) $600000.
B) $720000.
C) $640000.
D) $ 40000.

Correct Answer:

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