Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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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 is $25,000.
Dividends are $5,000. What is ending retained earnings?
A
O $270,000
O $120,000
O $520,000
O $150,000
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Transcribed Image Text: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 is $25,000. Dividends are $5,000. What is ending retained earnings? A O $270,000 O $120,000 O $520,000 O $150,000
Expert Solution
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The retained earnings indicate the balance of undistributed profits. The retained earnings mean the profit left to the company after paying for all the expenses taxes and dividends. The retained earnings are one of the major sources of funds for the company which it can use to expand the business and achieve growth.

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