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4 December, 23:24

HUD, Co. had a beginning retained earnings of $29,240. For the year, the company had net income of $6,015 and paid dividends of $2,265. The company also issued $4,015 in new stock during the year. What is the ending retained earnings balance?

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  1. 4 December, 23:51
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    Ending Retained Earnings Balance $32 990

    Explanation:

    Retained earnings is the profit that is kept in the business after distributing income to shareholders in a form of dividends and can be calculated by

    Retained Earnings = Net Income - Dividends

    Opening Retained Earnings $29240

    During the Year Net income $6015

    Paid Dividends = $2,265

    Retained Eranings for the Year = 6015-2265 = $3750

    Ending balance of retained earnings

    29240+3750

    =$32990
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