The Don't Tread on Me Tire Company had retained earnings at December 31, 2015 of $217,000. During 2016, the company had revenues of $417,000 and expenses of $358,500, and the company declared and paid dividends of $12,700. Retained earnings on the balance sheet as of December 31, 2016 will be.
a. $275,500.
b. $45,800.
c. $262,800.
d. $321,300

Given:

Beginning retained earnings = $217,000

Revenues = $417,000

Expenses = $358,500

Dividends = $12,700

To find:

Ending retained earnings

Solution:

To calculate the ending retained earnings first we have to calculate the net income of the company. The formula to calculate the net income is as follows,

On plugging in the values in the above formula we get,

The formula to calculate the ending retained earnings is as follows,

Therefore, the retained earnings on the balance sheet as of December 31, 2016 will be $262,800 that is option c.

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy