Lowell Inc. reports net income for fiscal 2017 of $4,928 million, retained earni

Question

Lowell Inc. reports net income for fiscal 2017 of $4,928 million, retained earnings at the end of the year of $25,219 million, dividends during the year of $1,176 million and other transactions that increased retained earnings by $83 million.

What was the company's retained earnings balance at the start of fiscal 2017?

$29,054 million

$28,888 million

$21,384 million

$21,550 million

There is not enough information to calculate the amount.

$29,054 million

$28,888 million

$21,384 million

$21,550 million

There is not enough information to calculate the amount.

Explanation / Answer

Ending  retained earnings=Beginning  retained earnings+Net income-Dividends paid+Other transactions increasing retained earnings

25219=Beginning  retained earnings+4928-1176+83million

25219=Beginning  retained earnings+3835

Beginning  retained earnings=(25219-3835)million

=$21384million.

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