Question

The accountant for Huckleberry Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:
Retained earnings balance at the beginning of the year $151,000
Cash dividends declared for the year $46,000
Net income for the year $92,000
What is the ending balance for retained earnings?

Answer 1

Answer:

$197,000

Explanation:

We know that

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

= $151,000 + $92,000 - $46,000

= $197,000

We simply added the net income and subtract the dividend sum to the starting balance of the retained earnings account so that the precise value will arrive.