Use the table for the question(s)below.
-Consider the above statement of cash flows. If all amounts shown above are in millions of dollars, what was AOS Industries' retained earnings figure for 2018?
A)$2.1 million
B)$1.7 million
C)$1.3 million
D)$5.4 million

Question

Use the table for the question(s)below. 
-Consider the above statement of cash flows. If all amounts shown above are in millions of dollars, what was AOS Industries' retained earnings figure for 2018?
A)$2.1 million 
B)$1.7 million 
C)$1.3 million 
D)$5.4 million

Quizplus · Accepted Answer

The ending balance for retained earnings in 2018 can be calculated by taking the beginning balance ($3.4 million) and adding the net income for the year ($2.2 million) and then subtracting the dividends paid ($0.9 million): 
$3.4 million + $2.2 million - $0.9 million = $4.7 million 
Therefore, choice B ($1.7 million) is the closest to this calculated figure.

Use the Table for the Question(s)below