Cesar Ruiz was reviewing his company's activities at the end of the year (2017) and decided to prepare a retained earnings statement. At the beginning of the year his assets were $530,000, liabilities were $140,000, and common stock was $120,000. The net income for the year was $250,000. Dividends of $220,000 were paid during the year. Prepare a retained earnings statement in good form. (List items that increase retained earnings first.) CESAR RUIZ COMPANY Retained Earnings Statement $ : : $ Click if you would like to Show Work for this question: Open Show Work

The first task here that would aid the preparation of retained earnings statement for the current year is to first of determine the retained earnings for last year based on the information provided.

Retained earnings opening=Assets-liabilities-common stock

=$530,000-$140,000-$120,000=$270,000

Retained earnings statement for the current year

Opening retained earnings $270,000

net income for the year $250,000

Total earnings $520,000

dividends ($220,000)

Closing retained earnings $300,000

marvineetesh3 marvineetesh3 · Answer 2 · 2022-04-09T14:54:39+02:00

Retained earnings are $300,000, and the retained earning statement is given in the image below.

What is retained earning?

After paying all direct and indirect costs, income taxes, and dividends to shareholders, a company's retained profits are the amount of profit left over.

This is the portion of the company's equity that can be utilized to invest in new equipment, research and development, and marketing.

Computation of Opening mount of retained earning:

[tex]\text{Ope. Retained Earnings}= \text{Assets - liabilities - Common Stock}\\\text{Ope. Retained Earnings}= \$5,30,000-\$1,40,000-\$1,20,000\\\text{Ope. Retained Earnings}= $270,000[/tex]

Therefore, retained earning statement is given in the image below.

Learn more about retained earning, refer to:

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