Answer:
$13,000
Explanation:
Net income = retained earning Plus the dividends declared.
i.e., net income = retained earning + dividends.
Therefore, retained earning = net come - dividends.
To get retained earning at the end of year one:
Total net income
= 22,000 + 17,000, +9000, + 14,000, +25,000
=$87,000
Total dividends
=2000+2000+1000+3000+4000
=$12,000
retained earnings at year five
=$88,000
Beginning retained earnings = ending retained earnings − total net income + total dividends
=($88,000-87,000)=12,000
=$1000+12,000
=$13,000
