Question

8.

Sumter Pumps Corporation, a manufacturer of industrial pumps, reports the following results for the year ended January 31, 20Y2:

Retained earnings, February 1, 20Y1	$64,083,000
Net income	7,373,000
Cash dividends declared	967,000
Stock dividends declared	2,783,000

Prepare a retained earnings statement for the fiscal year ended January 31, 20Y2. Refer to the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtractive or negative numbers use a minus sign. The word “Less” is not required.

Prepare a retained earnings statement for the fiscal year ended January 31, 20Y2. Refer to the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Enter all amounts as positive numbers. The word “Less” is not required.

Score: 38/51

Sumter Pumps Corporation

Retained Earnings Statement

1	Retained earnings, February 1, 20Y1
2	Net income
3	Dividends declared
4	Increase in retained earnings
5	Retained earnings, January 31, 20Y2

Answer 1

Sumter Pumps Corporation
Retained Earnings Statement
For the fiscal year ended January 31, 20Y2				Calculation
Retained earnings, February 1, 20Y1		64,083,000
Net Income	7,373,000
Dividends declared	(3,750,000)			=967,000+2,783,000
Increase in retained earnings		3,623,000
Retained earnings, January 31, 20Y2		67,706,000