Statement of Retained Earnings TriCycle, Corp. began the year 2008 with $25 million in retained earnings. The firm earned net income of $7.5 million in 2008 and paid $1.05 million to its preferred stockholders and $3.05 million to its common stockholders. What is the year-end 2008 balance in retained earnings for TriCycle?

Question

Business

Micaela Burke

22 October, 10:44

Statement of Retained Earnings TriCycle, Corp. began the year 2008 with $25 million in retained earnings. The firm earned net income of $7.5 million in 2008 and paid $1.05 million to its preferred stockholders and $3.05 million to its common stockholders. What is the year-end 2008 balance in retained earnings for TriCycle?

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Michael Rojas · Answer 1

Retained Earning for TriCycle at End of year is $28.4 million

Explanation:

Retained Earning at beginning of year $25 million

Add: addition to retain earning for the year

Net income for the year $7.5 million

-Preferred stockholders dividend $1.05 million

-Common stockholders dividend $3.05 million

$3.4 million

Retained Earning at End of year $28.4 million