Ask Experts Questions for FREE Help !
Ask
    AJRCrystal's Avatar
    AJRCrystal Posts: 8, Reputation: 1
    New Member
    		  
    #1

    Jun 24, 2012, 02:25 PM
    How do I figure out retained earnings
    Cutlery had retained earnings of $162,850 at the beginning of 2010. During the year the company had total revenues of $875,000, total expenses (including taxes) of $795,000, bought vehicles and computers for $122,000, and paid cash dividends of $18,500. Compute Cutlery's retained earnings at the end of 2010.

    My work:

    Beginning retained Earnings $162,850 + net income $875,000-$795,000+$122,000=202,000 - dividends $18,500 = $183,500 retained earnings.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Jun 24, 2012, 05:09 PM
    Your formula is correct execpt for bought vehicles and computers, which is not part of retained earnings
    AJRCrystal's Avatar
    AJRCrystal Posts: 8, Reputation: 1
    New Member
    		  
    #3

    Jun 24, 2012, 05:50 PM
    Thank You
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Earnings,Retained Earnings, and dividend yield? [ 1 Answers ]

Polycom Systems earned $480 million last year and paid out 20 percent of earnings in dividends. By how much did the company’s retained earnings increase? With 100 million shares outstanding and stock price of $80, what was the dividend yield? (Hint: First compute dividends per share.)

Retained Earnings = Earnings less dividends [ 5 Answers ]

Could someone confirm that's the correct definition of R.E. I thought R.E. is net not pay out dividend but my professor has in his note as "Retained Earnings = Earnings less dividends"

Calculating net earnings and preparing statement of retained earnings [ 2 Answers ]

I just started my introduction to accounting class in university and I am a little stuck on this question because we didn't really go over this is class... please help! Here is the information given: Sea Surf Campground is a public camping ground in Ocean National Park. It has the following...

Earnings per share and retained earnings [ 2 Answers ]

I am confused on how to calculate the earnings per share and the common dividend per share as well as figure out what the increased retained earnings for the year. The problem states that the company had an operating profit of $210,000. Interest expense for the year was $30,000; preferred...

View more questions Search