chapter 1 assignment on connect financial accounting chapter 1 assignment on con

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chapter 1 assignment on connect financial accounting chapter 1 assignment on connect financial accounting chapter 1 assignment on connect financial accounting fari File Edit View History Bookmarks Window Help ezto.mheducation.com c- Yahoo Search Results Yahoo Search R. Course Content-81263 2189P Chapter 1 Assignment value: 2.00 points During its first five years of operations, Red Raider Consulting reports net income and pays dividends as follows. Required: Calculate the balance of retained earmnings at the end of each year. Note that retained earnings will always equal So at the beginning of year 1. Dividends Retained Earnings 1 S,500 560 2,000 2.700 3,8001 5,000 2 200 560 1,300 1,300 Hints References eBook & Resources Hint 1 Check my work

Explanation / Answer

Retained earnings = Beginning retained earnings + Net income – Dividends

Year 1 Retained earnings = $0 + $1,500 - $560 = $940

Year 2 Retained earnings = $940 + $2,000 - $560 = $2,380

Year 3 Retained earnings = $2,380 + $2,700 - $1,300 = $3,780

Year 4 Retained earnings = $3,780 + $3,800 - $1,300 = $6,280

Year 4 Retained earnings = $6,280 + $5,000 - $1,300 = $9,980

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