Question 1

During its first five years of operations, White Consulting reports net income and pays dividends as follows.

Required:Calculate the balance of retained earnings at the end of each year. Note that retained earnings will always equal $0 at the beginning of year 1.

Year	Net Income	Dividends	Retained Earnings
1	$1,350	$530
2	1,850	530
3	2,400	1,150
4	3,500	1,150
5	4,700	1,150