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    KneadHelp's Avatar
    KneadHelp Posts: 1, Reputation: 1
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    #1

    Sep 11, 2009, 12:57 PM
    Retained Earnings
    Please help!

    A company has 2,000 shares of $1 par value common stock and 200 shares of 5%, $110 par, noncumulative preferred stock outstanding. The balance in Retained Earnings at the beginning of the year was $500,000. Net income for the current year was $300,000. If the company paid a dividend of $2 per share on its common stock, what is the balance in Retained Earnings at the end of the year?

    Thanks,
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #2

    Sep 11, 2009, 02:54 PM
    Beginning Retained Earnings + Net Income - Dividends Paid = Ending Retained Earnings

    Two of the three, you're given explicitly. The third comes from a quick computation. Back to you for that computation. Post back with what you come up with.

    Cheers!
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