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kondaur [170]
3 years ago
9

Metlock, Inc. began the year with retained earnings of $402000. During the year, the company recorded revenues of $487000, expen

ses of $384000, and paid dividends of $38500. What was Metlock's retained earnings balance at the end of the year
Business
1 answer:
Alex787 [66]3 years ago
6 0

Answer:

$466,500

Explanation:

Assuming Metlock, Inc is free of tax, tax rate = 0%

Net profit of the year = (revenues - expenses) * (1- tax rate)

=  $487,000 - $384,000 = $103,000

Retained earnings balance at the end of the year

= Retained earnings balance at beginning of the year + net profit - dividend paid

= $402,000 + $103,000 - $38500

= $466,500

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