The retained earnings account has a beginning balance of $321,975 and an ending balance of $356,413.Net income is $40,251.Which of the following statements is true?
A)$5,813 would be subtracted when determining cash flows from financing activities.
B)$40,251 would be added when determining cash flows from financing activities.
C)$34,438 would be added when determining cash flows from financing activities.
D)All of the answers are acceptable. Dividends would be reported as cash outflows from financing activities.

Question

Quizplus · Accepted Answer

Beg Bal Ret Earnings + NI - Dividends = End Bal Ret Earnings $321,975 + $40,251 - Dividends = $356,413
Dividends = $5,813.

The Retained Earnings Account Has a Beginning Balance of $321,975