Question

At the beginning of the current year, Wilson Corporation had 200,000 shares of $1 par common stock outstanding and had retained earnings of $4,800,000. During the year, the company earned $1,675,000 and paid a year-end cash dividend of $3 per share. What was Wilson Corporation's retained earnings at the end of the year

Answer 1

$5,875,000

Step-by-step explanation:

Calculation to determine What was Wilson Corporation's retained earnings at the end of the year?

Ending retained earnings =[1,675,000-(200,000 x 3 )]+4,800,000

Ending retained earnings=(1,675,000 - 600,000 )+4,800,000

Ending retained earnings=1,075,000 + 4,800,000

Ending retained earnings = 5,875,000

Therefore Wilson Corporation's retained earnings at the end of the year is $5,875,000