Question
2. A firm reported retained earnings of $500 in 12/31/20x2. For 12/31/20x3, the firm reports sales of $2,000, margin of 25% and dividend payout ratio
2. A firm reported retained earnings of $500 in 12/31/20x2. For 12/31/20x3, the firm reports sales of $2,000, margin of 25% and dividend payout ratio of 50%. What is the retained earnings on 12/31/x3?
Beg. RE+(NI)-dividend = End RE
500+ (2000*25%)- ((2000*25%)*50%) =625
I got this answer but was told that it was wrong. Can someone please help.
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Strategic Managerial Accounting: Hospitality, Tourism & Events Applications
Authors: Tracy Jones, Helen Atkinson, Angela Lorenz, Peter Harris
6th Edition
