elenadelfosse
02.10.2019 •
Mathematics
Allen's roofing posts $5,000 in net income and $200 in dividends for the year. how does this affect the retained earnings on the balance sheet? select only one retained earnings increases by $4,800 retained earnings increases by $5,000 retained earnings increases by $5,200 retained earnings decreases by $4,800 retained earnings decreases by $5,000
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Ответ:
"Retained earnings increases by $4,800"
Step-by-step explanation:
Retained Earnings are the amount of money left over for a business after it has paid its dividends from its net income.
Simply put:
Retained Earnings = Income - Dividends
Here, it is given:
Income = 5000
Dividends = 200
Hence,
Retained Earnings = 5000 - 200 = $4800
Ответ: