The Don't Tread on Me Tire Company had retained earnings at December 31,2017 of $200,000.During 2018,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 31,2018 will be:

Question

Quizplus · Accepted Answer

First Calculate net income: 400,000 - 350,000 = 50,000
$200,000 + $50,000 - $11,000 = 239,000.

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