If retained earnings has instead decreased $47,500 after the closing entries were posted, and the dividends remained the same, what would have been the amount of net income or net loss?

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Business

Tomas Mueller

22 June, 18:38

If retained earnings has instead decreased $47,500 after the closing entries were posted, and the dividends remained the same, what would have been the amount of net income or net loss?

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Harper Vance · Answer 1

There will be a net loss since the retained earnings have been decreased by $47,500 after closing the entries. Even if the dividends remain the same. The dividend amount is small compared to the retained earnings and this will result to investment losses.