Lowell Inc. reports net income for fiscal 2014 of $4,000 million, retained earni
ID: 2618610 • Letter: L
Question
Lowell Inc. reports net income for fiscal 2014 of $4,000 million, retained earnings at the beginning of the year of $32,000 million, dividends during the year of $2,000 million and other transactions that increased retained earnings by $1000 million.
What was the company's retained earnings balance at the end of fiscal 2014?
$35,000 million
$31,000 million
$29,000 million
There is not enough information to calculate the ratio
$35,000 million
$31,000 million
$29,000 million
There is not enough information to calculate the ratio
Explanation / Answer
Ending retained earnings=Beginning retained earnings+Net income-Dividends paid+Other transactions increasing retained earnings
=(32000+4000-2000+1000)million
which is equal to
=$35000 million.
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