Beaver Tree Service
$$\begin{array} { l c }
\text { Bepinging retained earnings } & \$ 550,000 \
\text { Ending retained earnings } & 700,000 \
\text { Dividends paid } & 100,000 \
\text { Revenue } & 525,000
\end{array}$$
-Refer to the figure Beaver Tree Service.What are the company's expenses?

Question

Beaver Tree Service
 $$\begin{array} { l c } 
\text { Bepinging retained earnings } & \$ 550,000 \
\text { Ending retained earnings } & 700,000 \
\text { Dividends paid } & 100,000 \
\text { Revenue } & 525,000
\end{array}$$
-Refer to the figure Beaver Tree Service.What are the company's expenses?

Quizplus · Accepted Answer

The change in retained earnings is $150,000 ($700,000 - $550,000). Adding back the dividends paid ($100,000), the net income is $250,000. Therefore, expenses are $275,000 ($525,000 revenue - $250,000 net income).

Beaver Tree Service -Refer to the Figure Beaver Tree Service