Question

the following selected amounts are available for marigold company. retained earnings (beginning) $820 net loss 130 cash dividends declared 90 stock dividends declared 90 what is its ending retained earnings balance? $730 $640 $690 $510

Answer 1

Beginning Retained Earnings + Net Income ($22,000) − Dividends ($4,000) = Ending Retained Earnings ($51,200)

After deducting dividend payments, a company's retained earnings are its total net earnings or profits. The term "retained" refers to a crucial idea in accounting that describes how earnings were held by the corporation rather than distributed to shareholders as dividends.

Because of this, retained earnings go down when a business experiences a loss or pays dividends and go up when new profits are generated.

Retained earnings are a corporation's prior profits, less any dividends the company has previously paid. The following alternatives, which in general encompass all potential uses a firm might make of its excess cash, will help you better comprehend what retained earnings can tell you.

Learn More About Earning:

brainly.com/question/21219294

#SPJ4