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Balance in Retained Earnings

The Andrews company currently has the following balances in their equity accounts:

Common Stock $33,881
Retained earnings $97,166

Suppose next year the Andrews company generates $46,300 in Net Profit, and declares and pays $16,000 in Dividends. What will Andrews ending balance in Retained Earnings be next year?

a. $127,466
b. $131,047
c. $147,047
d. $80,181

Solution Preview

The Andrews company currently has the following balances in their equity accounts:

Common Stock $33,881
...

Solution Summary

The solution explains how to calculate the balance in Retained Earnings for next year

$2.19