Statement of Retained Earnings Jamaican Ice Cream Corp.started the year with a balance of retained earnings of $100 million.The company reported net income for the year of $45 million,paid dividends of $2 million to the preferred stock holders and $15 million to common stock holders.What is Jamaican Ice Cream's end of year balance in retained earnings?
A)$38 million
B)$55 million
C)$128 million
D)$162 million

Question

Quizplus · Accepted Answer

The end of year balance in retained earnings is calculated as the beginning balance plus net income minus total dividends paid. So, $100 million + $45 million - ($2 million + $15 million) = $128 million.