Dawson Corporation has the following information available for the current year: (in millions) Issued common stock $45 Treasury stock $65 Paid dividends $75 Net Income $130 Beginning common stock balance $625 Beginning retained earnings balance $475 Based on this information, what is Dawson's retained earnings balance at the end of the year? $605 $420. $530. $680. 2 P Under the accrual basis of accounting cash must be received before revenue is recognized. the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles. net income is calculated by matching cash outflows against cash inflows. events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received