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Finding the Retained Earnings Balance

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What is the process for finding ending Retained Earnings?
Retained earnings, beginning - $ 308,000
Cost of equipment purchased during year $49,000
Net loss for the year $4,600
Dividends declared/paid in year $15,800
Decreased in cash balance from beginning to end of year $10,100
Decrease in long-term debt during year $15,000.

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Solution Summary

The computation of ending retained earnings is shown in Excel. The general rule is presented and then applied.

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Your computation of ending retained earnings is shown in ...

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Carol Sargent, PhD
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  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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