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Presented in the bar charts are three columns for each of the first three years of a company's operations. The three columns represent amounts reported
Presented in the bar charts are three columns for each of the first three years of a company's operations. The three columns represent amounts reported at the end of each year - net income (left), dividends (middle), and retained earnings (right). Examine the graphs and respond to the following questions. Net Income, Dividends, and Retained Earnings $300 $250 110 $200 $150 90 90 $100 150 120 $50 100 80 80 80 40 30 20 $0 NI Div RE NI Div RE NI Div RE Year 1 Year 2 Year 3 NI Div RE Year 1 Year 2 Year 3 Click here to open the graph(s) in a new tab Required: Revenues minus expenses in Year 1 only What is the amount of Retained Earnings at the end of Year 1? 2a. At the end of Year 2, the company reports Net Income of $120. This amount includes 2b. What amount of dividends did the company declare in Year 2? 2c. What is the ending balance of Retained Earnings in Year 2? 2d. The ending balance of Retained Earnings in Year 2 includes: 3a. What amount of Net Income did the company report in Year 3? 3b. What amount of dividends did the company declare in Year 3? 3c. What is the ending balance of Retained Earnings in Year 3? 3d. The ending balance of Retained Earnings in Year 3 includes: _n Net Income minus dividends from Year 1 only Net Income minus dividends from Year 2 only Net Income minus dividends from Year 1 and Year 2
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