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quester [9]
3 years ago
6

For the past five years, Mookie Consulting Services reported the following annual net income and dividend amounts:

Business
1 answer:
Kitty [74]3 years ago
5 0

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

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