Question

Retained earnings, December 31, 2013 $342,700

Cost of buildings purchased during 2014 44,100
Net income for the year ended December 31, 2014 56,200
Dividends declared and paid in 2014 32,800
Increase in cash balance from January 1, 2014, to December 31, 2014 22,700
Increase in long-term debt in 2014 45,300
Required:
Calculate the Retained Earnings balance as of December 31, 2014.

Answer 1

the ending retained earning balance is $366,100

Step-by-step explanation:

The computation of the ending retained earning balance is given below:

= Opening balance of retained earnings + net income - dividend paid

= $342,700 + $56,200 - $32,800

= $366,100

Hence, the ending retained earning balance is $366,100

The same should be considered and relevant