A firm's year-end retained earnings balances are $670,000 and $560,000,for 2018 and 2019 respectively.The firm paid $10,000 in dividends in 2019.The firm's net profit after taxes in 2019 was ________.

Question

Quizplus · Accepted Answer

The change in retained earnings from 2018 to 2019 is $560,000 - $670,000 = -$110,000. Since the firm paid $10,000 in dividends, the net profit after taxes must have been -$110,000 + $10,000 = -$100,000.

A Firm's Year-End Retained Earnings Balances Are $670,000 and $560,000,for