Question

The Andrews company currently has the following balances in their equity accounts: Common Stock $12,079 Retained earnings $90,369 Suppose next year the Andrews company generates $46,300 in Net Profit, and declares and pays $16,000 in Dividends. What will Andrews ending balance in Retained Earnings be next year

Answer 1

$120,669

Step-by-step explanation:

Ending Retained Earnings = Opening Retained Earning + Net Income - Dividends

therefore,

Ending Retained Earnings = $90,369 + $46,300 - $16,000 = $120,669

thus,

Ending balance in Retained Earnings be next year will be $120,669