The Following Amounts Represent Totals from the First Three Years

question 144

Multiple Choice

The following amounts represent totals from the first three years of operations.Calculate the balance of Retained Earnings at the end of 2018. $$\begin{array} { | l | r | r | r | } \hline & \mathbf { 2 0 1 6 } & \mathbf { 2 0 1 7 } & \mathbf { 2 0 1 8 } \\\hline \text { Net Income } & \$ 1,200 & - \$ 500 & \$ 2,300 \\\hline \text { Net Cash Flows } & \$ 500 & \$ 300 & \$ 2,800 \\\hline \text { Diwidends } & \$ 200 & \$ 0 & \$ 200 \\\hline \text { Issuance of Stock } & \$ 2,000 & \$ 0 & \$ 0 \\\hline\end{array}$$

• A)$2,600
• B)$4,600
• C)$3,100

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