Friday, 4 October 2019

Below is information related to retained earnings for five independent situations. Calculate the answer to each.

Below is information related to retained earnings for five independent situations. Calculate the answer to each.

1. A company reports an increase in retained earnings of $3,200 and net income of $4,800. What is the amount of dividends?
2. A company reports beginning retained earnings of $1,800, net income of $1,200, and $200 dividends. What is the amount of ending retained earnings?
3. A company reports an increase in retained earnings of $2,500 and dividends of $1,500. What is the amount of net income?
4. A company reports ending retained earnings of $2,700, net income of $900, and dividends of $500. What is the amount of beginning retained earnings?
5. A company reports an increase in retained earnings of $500 and net income of $1,200. What is the amount of dividends?

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