Question

A company reports ending retained earnings of $1.52 billion, net income of $0.41 billion, and dividends of $0.04 billion. What is the amount of beginning retained earnings?

Answer 1

Answer:

$1.15 billion

Explanation:

Given that,

Ending retained earnings = $1.52 billion

Net income = $0.41 billion

Dividends = $0.04 billion

Beginning retained earnings:

= Ending retained earnings - Net income + Dividend

= $1.52 billion - $0.41 billion + $0.04 billion

= $1.15 billion

Therefore, the beginning retained earnings of this company is amounted to be $1.15 billion.