Allen's Roofing posts $5,000 in net income and $200 in dividends for the year. How does this affect the retained earnings on the
balance sheet? SELECT ONLY ONE Retained earnings increases by $4,800 Retained earnings increases by $5,000 Retained earnings increases by $5,200 Retained earnings decreases by $4,800 Retained earnings decreases by $5,000
Net income increases retained earnings, while distributed dividends decrease retained earnings. Retained earnings is simply the amount of net income left after distributing dividends.
The net change in retained earnings = net income - distributed dividends = $5,000 - $200 = $4,800 increase
This is not an isosceles triangle because there are different angle measurements. The rule of an isosceles triangle is that it must always have two equal sides and angles.
