At the end of 2018, Sherwood Company had retained earnings of $18,240. During 2019, Sherwood had revenues

Question:

At the end of 2018, Sherwood Company had retained earnings of $18,240. During 2019, Sherwood had revenues of $837,400 and expenses of $792,100, and paid cash dividends in the amount of $38,650.
Required:
1. Determine the amount of Sherwood's retained earnings at December 31, 2019.
2. Comment on Sherwood's policy.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...