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Financial Reporting of and Retained Earnings

Question 105

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Financial reporting of and retained earnings
The 2015 annual report of Kirtland Products disclosed net income of approximately $87 million for the fiscal year ending March 31,2015,and retained earnings of approximately $485 million as of March 31,2015.
(a)Which financial statement shows computation of net income?
(b)Which financial statement includes the retained earnings figure of $485 million?
(c)Explain why Kirtland reports $87 million as net income,but a much larger amount,$485 million,as retained earnings.

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(a)Income statement (or statement of ope...

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