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The pro forma financials for a firm show the following. The retained earnings balance for this...

The pro forma financials for a firm show the following. The retained earnings balance for this firm at the end of August 2021 is $150,000. In September 2021, this firm pays a quarterly cash dividend of $30,000 and has net income after taxes equal to $25,000. This firm neither sells nor buys stocks or bonds, or any other securities, during this time. The retained earnings balance for this firm at the end of September 2021 is:   

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Expert Solution

Retained earings at the end of august = 150000

less) Cash dividends paid = 30000 (As dividends are paid from retained earnings)

Add) net income for sept = 25000 (As netincome is an addition to retained earnings)

Retained earnings at the end of september is = 145000

jeff jeffy answered 2 years ago
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