Question

HUD, Co. had a beginning retained earnings of $28,850. For the year, the company had net income of $5,665 and paid dividends of $2,075. The company also issued $3,725 in new stock during the year. What is the ending retained earnings balance

Answer 1

$30,790

Step-by-step explanation:

Hud corporation has a beginning retained earnings of $28,850

The net income is $5,665

The dividend is $3,725

Therefore the ending retained earnings balance can be calculated as follows

= 28,850+(5,665-3,725)

= 28,850 + 1940

= $30,790

Hence the ending retained earnings is $30,790