For the past five years,Mookie Consulting Services reported the following annual net income and dividend amounts:
$$\begin{array} { c c c }
\text { Year } & \text { Net Income } & \text { Dividends } \
1 & \$ 22,000 & \$ 2,000 \
2 & 17,000 & 2,000 \
3 & 9,000 & 1,000 \
4 & 14,000 & 3,000 \
5 & 25,000 & 4,000
\end{array}$$
If Mookie had Retained Earnings of $88,000 at the end of year 5,what was the company's Retained Earnings at the beginning of Year 1?

Question

For the past five years,Mookie Consulting Services reported the following annual net income and dividend amounts:
$$\begin{array} { c c c } 
\text { Year } & \text { Net Income } & \text { Dividends } \
1 & \$ 22,000 & \$ 2,000 \
2 & 17,000 & 2,000 \
3 & 9,000 & 1,000 \
4 & 14,000 & 3,000 \
5 & 25,000 & 4,000
\end{array}$$
If Mookie had Retained Earnings of $88,000 at the end of year 5,what was the company's Retained Earnings at the beginning of Year 1?

Quizplus · Accepted Answer

Retained Earnings at the beginning of Year 1 = Retained Earnings at the end of Year 5 - Net Income + Dividends for Years 1-5= $88,000 - $22,000 + $2,000 - $17,000 + $2,000 - $9,000 + $1,000 - $14,000 + $3,000 - $25,000 + $4,000= $13,000

For the Past Five Years,Mookie Consulting Services Reported the Following