Presented in the bar charts are three columns for each of the first three years of...

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Presented in the bar charts are three columns for each of the first three years of a company's operations. The three columns represent amounts reported at the end of each year - net income (left), dividends (middle), and retained earnings (right). Examine the graphs and respond to the following questions. Net Income, Dividends, and Retained Earnings $300 $250 110 $200 $150 90 90 $100 $50 80 80 40 $0 NI Div RE 100 80 20 NI Div RE 120 30 NI Div RE 150 Required: 1. What is the amount of Retained Earnings at the end of Year 1? 2a. At the end of Year 2, the company reports Net Income of $120. This amount includes: 2b. What amount of dividends did the company declare in Year 2? 2c. What is the ending balance of Retained Earnings in Year 2? 2d. The ending balance of Retained Earnings in Year 2 includes: 3a. What amount of Net Income did the company report in Year 3? 3b. What amount of dividends did the company declare in Year 3? 3c. What is the ending balance of Retained Earnings in Year 3? 3d. The ending balance of Retained Earnings in Year 3 includes: Revenues minus expenses in Year 1 only Revenues minus expenses in Year 2 only Revenues minus expenses from Year 1 and Year 2 Net Income minus dividends from Year 1 only Net Income minus dividends from Year 2 only Net Income minus dividends from Year 1 and Year 2 Net Income minus dividends from Year 1 only Net Income minus dividends from Year 2 only Net Income minus dividends from Year 3 only Net Income minus dividends from Year 1, Year 2, and Year 3 Presented in the bar charts are three columns for each of the first three years of a company's operations. The three columns represent amounts reported at the end of each year - net income (left), dividends (middle), and retained earnings (right). Examine the graphs and respond to the following questions. Net Income, Dividends, and Retained Earnings $300 $250 110 $200 $150 90 90 $100 $50 80 80 40 $0 NI Div RE 100 80 20 NI Div RE 120 30 NI Div RE 150 Required: 1. What is the amount of Retained Earnings at the end of Year 1? 2a. At the end of Year 2, the company reports Net Income of $120. This amount includes: 2b. What amount of dividends did the company declare in Year 2? 2c. What is the ending balance of Retained Earnings in Year 2? 2d. The ending balance of Retained Earnings in Year 2 includes: 3a. What amount of Net Income did the company report in Year 3? 3b. What amount of dividends did the company declare in Year 3? 3c. What is the ending balance of Retained Earnings in Year 3? 3d. The ending balance of Retained Earnings in Year 3 includes: Revenues minus expenses in Year 1 only Revenues minus expenses in Year 2 only Revenues minus expenses from Year 1 and Year 2 Net Income minus dividends from Year 1 only Net Income minus dividends from Year 2 only Net Income minus dividends from Year 1 and Year 2 Net Income minus dividends from Year 1 only Net Income minus dividends from Year 2 only Net Income minus dividends from Year 3 only Net Income minus dividends from Year 1, Year 2, and Year 3

Answer rating: 100% (QA)

80 10020 Revenues and expenses 30 170 8012030 Year 1 retai... View the full answer