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Retained Earnings in Balance Sheet

My company showed retained earnings of $400,000 on its balance sheet last year. This year, the company's earnings per share (EPS) were $3.00 and its dividends paid per share (DPS) were $1.00. The company has 200,000 shares of stock outstanding. Showing the computations what is the level of retained earnings on the company's balance sheet this year?

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The retained earnings this year would be the retained earnings of last year plus the retained profit for this year.
The EPS = Net Income/No. of Shares
given that EPS is $3 ...

Solution Summary

The solution explains the calculation of the ending retained earnings based on earnings and dividends