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

    Mar 3, 2010, 06:36 AM
    Retained earnings
    Earned revenue 462,500
    Incurred expenses 370,000 (excluding income tax)
    Income tax rate 20%
    Dividends 1,400

    This is the first year of operation

    Calculate beginning and ending retained earnings
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Mar 3, 2010, 05:57 PM

    Please start your own thread for you question. Continually tagging onto other people's just creates long threads with irrelevant stuff and keeps old threads alive. I've moved yours to its own thread.

    Beginning Retained Earnings
    + Net Income
    - Dividends
    = Ending Retained Earnings

    And you also have to get the net income by applying the tax rate to the income before tax.
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