Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 26

Calculate retained earnings From the following data, calculate the retained earnings balance as of December 31, 2010:

Retained earnings, December 31, 2009	$311,800
Cost of equipment purchased during 2010	32,400
Net loss for the year ended December 31, 2010	4,700
Dividends declared and paid in 2010	18,500
Decrease in cash balance from January 1, 2010, to December 31, 2010 .	13,600
Decrease in long-term debt in 2010	14,800

Step 1 of 5

Retained Earnings are the net income of the corporation, retained in the business to be used for reinvestment which has not been distributed to its stockholders.