The retention ratio (RR) is equal to 50%, and retained earnings (RE) are $5000. Compute net...

The retention ratio (RR) is equal to 50%, and retained earnings (RE) are $5000. Compute net income (NI) in $

Expert Solution

Retention ratio (RR) is equal to 50%

Retained earnings (RE) are $5000

Retention Ratio = Retained Earning / Net Income

0.5 = 5000 / Net Income

Net Income = 5000/ 0.5

Net Income = $ 10000

Rahul Sunny answered 2 years ago

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