Question

The Good Word Store reported the following figures: Retained Earnings, January 31, 2019. Retained Earnings, January 31, 2020.. Total Stockholders' Equity, January 31, 2019...........$30,000,000 Total Stockholders' Equity, January 31, 2020...$26,000,000 $39,000,000 $22,000,000 The company's fiscal year ends on January 31 each year. Dividends declared for the fiscal year ending January 31, 2020 are $14,000,000. What is the net loss for the fiscal year ending January 31, 2020? O $8,000,000 net loss O $17,000,000 net loss O $14,000,000 net loss O $3,000,000 net loss

Answer 1

The net loss for the fiscal year ending January 31, 2020 is $7,000,000.

Step-by-step explanation:

To calculate the net loss for the fiscal year ending January 31, 2020, we need to use the equation:

Net Loss = (Retained Earnings, January 31, 2019 + Total Stockholders' Equity, January 31, 2019) - (Retained Earnings, January 31, 2020 + Total Stockholders' Equity, January 31, 2020 + Dividends declared)

Substituting the given values, we get:

Net Loss = ($30,000,000 + $39,000,000) - ($26,000,000 + $22,000,000 + $14,000,000)

Net Loss = $69,000,000 - $62,000,000

Net Loss = $7,000,000

Therefore, the net loss for the fiscal year ending January 31, 2020 is $7,000,000.

Answer 2

The net loss for the fiscal year ending January 31, 2020, is $8,000,000.

Step-by-step explanation:

To determine the net loss for the fiscal year ending January 31, 2020, we need to calculate the change in retained earnings. Retained earnings represent the accumulated profits and losses of a company.

The formula for calculating net loss is: Net Loss = Retained Earnings (January 31, 2019) - Retained Earnings (January 31, 2020) + Dividends declared for the fiscal year ending January 31, 2020.

In this case, the retained earnings on January 31, 2019, were $30,000,000, and the retained earnings on January 31, 2020, were $26,000,000.

The dividends declared for the fiscal year ending January 31, 2020, were $14,000,000. Plugging these numbers into the formula:

Net Loss = $30,000,000 - $26,000,000 + $14,000,000

= $18,000,000 - $26,000,000 + $14,000,000

= -$8,000,000

Therefore, the net loss for the fiscal year ending January 31, 2020, is $8,000,000. The correct answer is $8,000,000 net loss.