Question

Dividends $ 2.600 Year 1 Year 2 Year 3 Year 4 Revenue $17,400 7,400 47, 400 92,400 Expenses $ 6,200 11,200 26,200 41,200 5,600 10,600 Required: 1. Complete the table below based on your spreadsheet results: (Negative amount should be indicated by a minus sign.) Year Net Income Retained Earnings

Answer 1

	Net income (Refer working note 1	Retained earnings (Refer working note 2)
Year 1	$11,200	$8,600
Year 2	($3,800)	$4,800
Year 3	$21,200	$20,400
Year 4	$51,200	$61,000

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	Revenues (a)	Expenses (b)	Net income (a - b)
Year 1	$17,400	$6,200	$11,200
Year 2	$7,400	$11,200	($3,800)
Year 3	$47,400	$26,200	$21,200
Year 4	$92,400	$41,200	$51,200

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	Beginning retained earnings (a)	Net Income (Refer working note 1) (b)	dividends (c)	Ending retained earnings (a + b - c)
Year 1	$0	$11,200	$2,600	$8,600
Year 2	$8,600 [Ending balance of year 1]	($3,800)	$0	$4,800
Year 3	$4,800 [Ending balance of year 2]	$21,200	$5,600	$20,400
Year 4	$20,400 [Ending balance of year 3]	$51,200	$10,600	$61,000