At the end of the year, retained earnings totaled $1,700. During the year, net income was $250, and dividends of $120 were declared and paid. Retained earnings at the beginning of the year totaled:
A) $2,070
B) $1,330
C) $1,230
D) $1,570

Question

Quizplus · Accepted Answer

Retained earnings at the beginning of the year can be calculated by subtracting net income and adding dividends to the end-of-year retained earnings: $1,700 - $250 + $120 = $1,570.

At the End of the Year, Retained Earnings Totaled $1,700