Retained earnings at the beginning of the year is $100,000. Total assets are $400,000. Liabilities are $250,000. Net income for the year are $25,000. Dividends are $5,000. What is ending retained earnings? Group of answer choices $120,000 $150,000 $520,000 $270,000
Retained earnings at the beginning of the year is $100,000. Total assets are $400,000. Liabilities are $250,000. Net income for the year are $25,000. Dividends are $5,000. What is ending retained earnings? Group of answer choices $120,000 $150,000 $520,000 $270,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Retained earnings at the beginning of the year is $100,000. Total assets are $400,000. Liabilities are $250,000. Net income for the year are $25,000. Dividends are $5,000. What is ending retained earnings?
Group of answer choices
$120,000
$150,000
$520,000
$270,000
Expert Solution
Step 1 Introduction
The retained earnings of the business include the Accumulated profits for the different years.
The dividend is declared and paid to the shareholders from the retained earnings of the business.
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