Question

Pfizer Inc., a pharmaceutical company, reported Net income for fiscal 2007 of $8,144 million, Retained earnings at the start of the year of $49,669 million and dividends of $8,153 million. If there were no other transactions during the year that affected retained earnings, what was the balance of retained earnings at the end of the year

Answer 1

$49,660 million

Step-by-step explanation:

The computation of retained earnings at the end of the year is shown below;

= Beginning retained earnings + Net income - Dividends

Given that;

Beginning retained earnings = $49,669 million

Net income = $8,144million

Dividend = $8,153

Balance of retained earnings at the end of the year

= $49,669 + $8,144 - $8,153

= $49,660 million