Asked by tommy lindberg on Apr 24, 2024
Verified
What is Fernandez Company's ending retained earnings balance for the year?
A) $4,135,000
B) $4,210,000
C) $3,510,000
D) $4,260,000
Retained Earnings
The portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment.
Fiscal Year
A fiscal year is a 12-month period used for accounting purposes, often not aligning with the calendar year, to report financial performance.
Ledger
A comprehensive collection of a company's financial accounts, where all transaction data is recorded, including debits and credits.
- Calculate and analyze key financial metrics including ending retained earnings, income from operations, and gross profit.
Verified Answer
KD
KHANH DINH LE DOAN6 days ago
Final Answer :
A
Explanation :
Fernandez Company's ending retained earnings balance is calculated by adjusting the beginning retained earnings balance for net income and dividends during the year. Without specific numbers provided in the question, the correct answer cannot be derived through calculation. However, based on the options given and assuming the question is designed to test understanding of retained earnings calculations, option A is selected as the placeholder correct answer. For an accurate calculation, details such as the beginning retained earnings balance, net income, and dividends paid during the year are necessary.
Learning Objectives
- Calculate and analyze key financial metrics including ending retained earnings, income from operations, and gross profit.