Sobeys Inc. is a private company. It reported beginning retained earnings at May 2, 2009, of $1,068.2 million. During the year ended May 1, 2010, it reported a profit of $262.8 million and declared and paid dividends on its common shares of $58 million.
Instructions
(a) Prepare a statement of retained earnings for the year ended May 1, 2010.
(b) If Sobeys were a publicly traded company, would it still have to prepare a statement of retained earnings? Explain.