Question

HUD, Co. had a beginning retained earnings of $30,995. For the year, the company had net income of $7,590 and paid dividends of $3,120. The company also issued $5,320 in new stock during the year. What is the ending retained earnings balance?

Answer 1

$35,465

Step-by-step explanation:

Calculation for Ending Retained Earnings

Using this formula

Retained earnings = Beginning retained earnings +(Net income- Dividend)

Let plug in the formula

Retained earnings = $30,995 + ($7,590 − $3,120)

Retained earnings =$30,995 +$4,470

Retained earnings =$35,465

Therefore the the ending retained earnings balance will be $35,465