The ending retained earnings balance of the Brown Hat restaurant chain increased by $4.3 billion from the beginning of the year. The company had declared a dividend of $1.5 billion. What was the profit earned during the year?

Question

Quizplus · Accepted Answer

The profit earned during the year can be calculated by adding the dividends declared to the increase in retained earnings. Therefore, $4.3 billion (increase in retained earnings) + $1.5 billion (dividends declared) = $5.8 billion.

The Ending Retained Earnings Balance of the Brown Hat Restaurant