Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

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.