Answered

Westonci.ca is the premier destination for reliable answers to your questions, brought to you by a community of experts. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.


A Company had beginning retained earnings of $190,000, net income of $52,000, and
dividends of $52,000. The ending retained earnings is;

Sagot :

Samawati

Answer:

$190,000

Explanation:

Retained earnings are the profits not distributed to shareholders as dividends. In a given period, retained earnings will be the difference between profits and dividends.

I.e., retained earning = profits - dividends.

Therefore, Ending retained earning can be calculated as

Beginning retained earning + profits - dividends.

In this case

retained earnings = $190,000 + $52,000 - $52,000

=$242,000 - $52,000

=$190,000

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.