Question

How much did Five Below's Retained Earnings increase from the end of the 2020 fiscal year until the end of the 2021 fiscal year?

a)$123,361,000; the same amount as its 2022 net income.
b)$839,062,000; the amount presented for Retained Earnings on the 2021 balance sheet.
c)$278,810,000; the same amount as its 2021 net income.
d)$560,252,000; the amount presented for Retained Earnings on the 2020 balance sheet.

Answer 1

The retained earnings of Five Below increased by (option b) $839,062,000 from the end of the 2020 fiscal year to the end of the 2021 fiscal year.

Step-by-step explanation:

The correct answer is b) $839,062,000; the amount presented for Retained Earnings on the 2021 balance sheet.

Retained Earnings represent the accumulated profits of a company that have not been distributed to shareholders as dividends. It is calculated by subtracting dividends paid to shareholders from net income over a period of time.

In this case, the question asks about the increase in retained earnings from the end of the 2020 fiscal year to the end of the 2021 fiscal year. The amount presented for Retained Earnings on the 2021 balance sheet, $839,062,000, represents the increase in retained earnings during that period.