Question

Currier Corporation began 2018 with retained earnings of $300 million. Revenues during the year were $480 ​million, and expenses totale $290 million. Currier declared dividends of $54 million. What was the​ company's ending balance of retained​ earnings? To answer this​ question, prepare Currier​'s statement of retained earnings for the year ended December​ 31, 2018​, complete with its proper heading.

Answer 1

Answer:

$436 million

Explanation:

For the year ended December 31, 2020, the preparation of the retained earnings statement is provided below:

                                             Currier Corporation

                                    Retained Earning statement

                              For the year ended December 31, 2020

Beginning balance of retained earnings     $300 million

Add: Net income                                           $190 million

Less: dividend declared                               -$54 million

Ending balance of retained earnings         $436 million

The net income would be

= Revenues - expenses

= $480 million - $290 million

= $190 million