How will this impact retained earnings

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XYZ Company has a net loss of $100,000 for the year and pays dividends of $30,000 to its shareholders. How will this impact Retained Earnings?
A) Retained earnings will decrease by $70,000.
B) Retained earnings will decrease by $30,000.
C) Retained earnings will decrease by $130,000.
D) Retained earnings will decrease by $100,000.
E) Retained earnings will not change.

XYZ Company has a loss of $100,000 for the year and pays its shareholders a dividend of $20,000. How will this impact retained earnngs?
A) Retained earnings will increase by $120,000.
B) Retained earnings will increase by $80,000.
C) Retained earnings will increase by $20,000.
D) Retained earnings will decrease by $120,000.
E) Retained earnings will not change.

Reference no: EM13304324

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