During Its First Five Years of Operations,Della Manufacturing Reports Net

question 100

Essay

During its first five years of operations,Della Manufacturing reports net income and pays dividends as follows.Calculate the balance of retained earnings at the end of each year.Note that retained earnings will always equal $0 at the beginning of year 1.
$$\begin{array} { c c c l } \text { Year } & \begin{array} { c } \text { Net } \\\text { Income }\end{array} & \text { Dividends } & \begin{array} { l } \text { Retained } \\\text { Earnings }\end{array} \\\hline 1 & \$ 1,700 & \$ 1,000 & \\2 & 2,700 & 1,000 & \\3 & 3,200 & 2,000 & \\4 & 5,400 & 2,000 & \\5 & 7,600 & 3,000 & \\-\end{array}$$