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26 March, 06:01

On January 1, 2016, Miller Corporation had retained earnings of $8,000,000. During 2016, Miller reported net income of $1,500,000, declared dividends of $500,000, and issued common stock for $1,000,000. What were Miller's retained earnings on December 31, 2016?

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  1. 26 March, 07:11
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    Miller's retained earnings on December 31, 2016 is $9,000,000.

    Explanation:

    Miller's retained earnings on 31 December 2016 = retained earnings on January 1, 2016 + net income - declared dividends

    = $8,000,000 + $1,500,000 - $500,000

    = $ 9,000,000

    Therefore, Miller's retained earnings on December 31, 2016 is $9,000,000.
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