The Don't Tread on Me Tire Company had Retained Earnings at December 31,2015 of $200,000.During 2016,the company had revenues of $400,000 and expenses of $350,000,and the company declared and paid dividends of $11,000.Retained earnings on the balance sheet as of December 31,2016 will be:

Question

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The retained earnings for 2016 are calculated by adding the net income for the year to the retained earnings at the beginning of the year and then subtracting any dividends paid. Net income is $400,000 (revenues) - $350,000 (expenses) = $50,000. Retained earnings at the end of 2016 = $200,000 (beginning retained earnings) + $50,000 (net income) - $11,000 (dividends) = $239,000.

The Don't Tread on Me Tire Company Had Retained Earnings