Dw has an ending retained earnings balance of $51,400. if during the year dw paid dividends of $4,000 and had net income of $21,600, then what was the beginning retained earnings balance?

Retained Earnings at the Beginning was $ 33.800

Explanation:

The retained earnings is the value of Net Income that the company didn't distribute with the shareholders, so each year that the company keeps its results in retained earnings it grows in value.

The other option is to pay dividends or make investments using these reserves of money, in this case, the company start with a Retained Earnings of $33.800 to finish the year with $51.400, See details below:

(Ret. Earnings at the Beginnig) $33.800 - $4.000 + $21.600 = $51.400 End

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.

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