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15 June, 18:57

If Mookie had Retained Earnings of $88,000 at the end of year 5, what was the company's Retained Earnings at the beginning of Year 1?

A.$13,000.

B. $25,000.

C. $7,000.

D. $1,000

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  1. 15 June, 20:07
    0
    Answer: A. $13000

    During its first five years of operation, Mookie Consulting Services reported the following annual net income and dividend amounts:

    Year Net Income Dividends

    1 $22,000 $2,000

    2 17,000 2,000

    3 9,000 1,000

    4 14,000 3,000

    5 25,000 4,000

    If Mookie had Retained Earnings of $88,000 at the end of year 5, what was the company's Retained Earnings at the beginning of

    Year 1?

    a. $13,000 d. $41,000

    b. $23,000 e. some other amount

    c. $37,000

    Explanation: the difference between total dividends (75,000$) and total net Income (88000$) gives the Retained Earnings = $13000
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