During the year, patriot partners had $245,000 in revenues, $120,000 in expenses, and $40,000 in declared dividends. What was the total change in retained earnings during the year?

Question

Business

Catalina Glenn

18 June, 04:06

During the year, patriot partners had $245,000 in revenues, $120,000 in expenses, and $40,000 in declared dividends. What was the total change in retained earnings during the year?

+3

Answers (1)

Know the Answer?

Kate Conway · Answer 1

Calculation of total change in retained earnings during the year:

Total change in retained earnings during the year can be calculated using the following formula:

Total change in retained earnings during the year = Revenues Earned during the year - Expenses incurred during the year - Dividends declared during the year

= 245000-120000-40000

= 85,000

Hence, total change in retained earnings during the year is $85,000