Cape Co. started business this year. For this year, it had revenues of $240,000, expenses of $180,000 and cash flows from operating activities of $48,000, and paid dividends of $6,000. What is the amount of Retained Earnings at the end of Cape's first year of operations?
A. $48,000
B. $54,000
C. $42,000
D. $114,000
Answer: B
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