1. A company had a beginning balance in retained earnings of $43,000. It had net income of $6,000 and paid out cash dividends of $5,625 in the current period. The ending balance in retained earnings equals:

		$54,625.
		$42,625.
		$11,625.
		$43,375.
		$49,000.

2. The Retained Earnings balance reported on the balance sheet typically is affected by:

		Net income.
		Net loss.
		Dividends paid.
		All of the above.

Please help with the 2 questions above and please provide an explanation as to why you choose the answer