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A company paid dividends of $15,000, generated total sales of $845,000, and incurred total expenses of $792,000 in the current year. If ending retained earnings is $165,000, what was beginning retained earnings?

Respuesta :

Answer:

The beginning retained earnings will be "127,000".

Explanation:

The given values are:

Total sales,

= $845,000

Company paid,

= $15,000

Total expenses,

= $792,000

Retained earning,

= $165,000

Now,

⇒  [tex]Retained \ earning \ this \ year = Profits-Dividends[/tex]

⇒                                               [tex]=845,000-792,000 -$15,000[/tex]

⇒                                               [tex]=38,000[/tex]

and,

⇒  [tex]Beginning \ retained \ earnings = Ending \ RE-this \ year \ RE[/tex]

⇒                                                  [tex]=165,000-38,000[/tex]

⇒                                                  [tex]=127,000[/tex]

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