Larson Company Ends Its Recent Year of Operations with $3,500,000

question 129

Essay

Larson Company ends its recent year of operations with $3,500,000 in retained earnings. During the year Larson's net income exceeded its dividend declarations by $200,000. Larson's dividend declarations were $25,000 greater than the dividend payments.
Requirement:
How much was Larson Company's beginning retained earnings?

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