Reference no: EM132329274

Question

During its first five years of operations, Red Raider 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          $1,700           $ 600

2          $ 2,200          $ 600

3          $ 3,100          $ 1,500

4          $ 4,200          $ 1,500

5          $5,400           $1,500