Acompany has retained earnings of $94,000 as of december 31, 2014. the pro-forma income statement projects net income of $22,000 for 2015. the company expects to declare their annual dividend on march 15, 2015 of $0.70 per share and has a total of 100,000 shares outstanding. what will the projected retained earnings account be as of december 31, 2015? a. $186,000 b. $46,000 c. $16,000 d. $2,000

b. $46,000

Explanation:

The computation of the projected retained earnings is shown below:

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

where,

Dividend = 100,000 shares × $0.70 = $70,000

The other items values would remain the same

So, the  projected retained earnings would be

=  $94,000 + $22,000 - $70,000

= $46,000

answer; /// i do believe the correct answer is (30,000);