E $03-02($Static$)$ Using Basic Excel Skills to Calculate the Balance in Retained Earnings $[$LO$3-6]$

Part $1$

A company provides the following information related to earnings and dividends for its first four years of operations.

Net Income Dividends

Year $115,0003,000$

Year $24,0000$

Year $325,00010,000$

Year $445,0008,000$

Required:

Calculate the Retained Earnings balance at the end of each year.

Part $2$

Suppose instead that the company provided the following information, which reflects a $20\%$ increase in revenues in Years $14.$

Revenues Expenses Dividends

Year $126,0007,0003,000$

Year $26,0009,0000$

Year $354,00020,00010,000$

Year $4102,00040,0008,000$

Required:

Calculate net income and the ending balance of Retained Earnings in this alternative scenario.

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