A company had a beginning balance in retained earnings of $44,800. It had net income of $7,800 and declared and paid cash dividends of $6,075 in the current period. The ending balance in retained earnings equals:

$46,525

Explanation:

Formula for ending retained earnings is as follows;

Ending retained earnings = Beginning retained earnings + Net income -  cash dividend

Beg. RE = 44,800

Net income = 7,800

Cash dividends = 6,075

Plug in the values to the above formula;

Ending retained earnings = 44,800 + 7,800 - 6.075

Ending RE  balance would be = $46,525

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