A firm has net income of $50,000. Dividends are $15,000
How much does the firm put in retained earnings?

Hi,
YOu would put the net income amount from the incopme statement ( I assume that is the 50,000) and then the dividends are those that are paid during the accounting period... hope that helps :)

Hi... the Retained Earnings are those which are Retained by the business after all expenses including the dividends are paid... so you'll take in the Retained Earnings $35,000 i.e. ($50,000-$15,000).