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Splish Brothers Inc. began the year 2022 with retained earnings of $658000. During the year, the company sold additional shares of stock for $1023000, recorded revenues of $587000, expenses of $376000, and paid dividends of $143000. What was Splish's retained earnings balance at the end of 2022?

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tutordamola

Answer:

The answer is $726,000

Explanation:

Ending inventory=

Opening/beginning retained earnings

Plus net income

Minus Dividend paid.

To find net income:

Revenue - expense

$587000 - $376000

=$211,000

Beginning Retained Earnings is $658000

Dividend paid is $143000

Therefore, ending retained earnings is

$658, 000 + $211,000 - $143,000

=$726,000