Wilmington Fisheries had a Retained Profits account balance on 1 January of $12 000. During the year, the firm had net profit of $7200 and paid a $3600 cash dividend. What is the balance in Retained Profits at the end of the financial year on 31 December?
A) $12 200
B) $15 600
C) $19 600
D) $21 200

Question

Quizplus · Accepted Answer

The balance in Retained Profits at the end of the year is calculated by adding the net profit to the beginning balance and then subtracting any dividends paid. Therefore, $12,000 + $7,200 - $3,600 = $15,600.

Wilmington Fisheries Had a Retained Profits Account Balance on 1