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11111nata11111 [884]
3 years ago
14

Electra Corp had Retained Earnings in 2017 of $750 million. In 2018, they recognized Net Income of $45 million and paid dividend

s of $10 million. Accordingly, their Retained Earnings in 2018 should be ________.
Business
1 answer:
andrezito [222]3 years ago
8 0

Answer:

$785 million

Explanation:

The computation of the ending balance of the retained earning is shown below:

The closing balance of retained earning = Opening balance of retained earnings + net income earned - dividend paid

= $750 million + $45 million - $10 million

= $785 million

While calculating the ending balance we have to deduct only dividend amount and other amounts are to be added

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Note: See the attached excel file for all the calculations of all the answers a to f above.

Download xlsx
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