The Opening Balance of Retained Earnings for Musicala Inc

question 64

Multiple Choice

The opening balance of retained earnings for Musicala Inc.was $325,000.During the year, it earned net income of $52,400 and paid dividends of $16,000.What is the closing balance of retained earnings?

• A)$256,600
• B)$309,000
• C)$361,400
• D)$377,400

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Definitions:

Normal Model

A symmetric probability distribution around the mean, indicating that occurrences of data are more common close to the mean than far from it.

Snowfall

The precipitation of flakes of crystalline water ice from clouds.

Normal Model N(73,9.2)

A statistical representation of a normal distribution with a mean (average) of 73 and a standard deviation of 9.2.

Normal Model

A statistical representation where most occurrences happen around the central peak and probabilities for values decrease as they move away from the mean.