Grizzly Company had Retained Earnings at December 31, 2018 of $210,000. During 2019, the company had revenues of $410,000 and balance sheet as of December 31, 2019 will be: expenses of $355,000, and the company declared and paid dividends of $12,000. Retained earnings on thea. $265,000 b. $43,000 c. $308,000

$253,000

Explanation:

The retained earnings represents the accumulated balance of the net income/loss of an entity over time. This balance is a reduced when a company makes a loss or pays dividend.

Hence,

Opening retained earnings + net income - dividend = closing retained earnings

The net income is the difference between the revenue and the expenses for the period.

Net income = $410,000 - $355,000

= $55,000

$210,000 + $55,000 - $12,000 = closing retained earnings

Closing retained earnings = $253,000

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