Global Inc.had net income for 2015 of $24,000.It declared and paid a $13,000 cash dividend in 2015.If the company's retained earnings for the end of the year was $39,600, what was the company's retained earnings balance at the beginning of 2015?
A)$28,600
B)$50,600
C)$76,600
D)$2,600

Question

Quizplus · Accepted Answer

The beginning retained earnings can be calculated by adding the net income to the beginning retained earnings and then subtracting the dividends paid. So, $39,600 (ending retained earnings) + $13,000 (dividends) - $24,000 (net income) = $28,600.