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Retained Earnings

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A company's balance sheet for 1999 showed a balance of retained earnings of 510 million. On the 2000 balance sheet the balance showed retained earnings of 510 million. Why is the balance the same and what calculation do you use to show why?

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Solution Summary

The solution does a superb job of laying out step-by-step explanation discussing why the balance is the same and what calculation to use and why. The solution is very well explained and uses detailed steps to explain the answer. The solution can be followed by anyone with a basic understanding of the concepts. Overall, an excellent response.

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The balance can be same for two reasons:

1. The net income of the company was 0. If the Net Income ...

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