If Mookie had Retained Earnings of $88,000 at the end of year 5, what was the company's Retained Earnings at the beginning of Year 1?

For the past five years, Mookie Consulting Services reported the following annual net income and dividend amounts:


Year Net Income Dividends

1 $ 22,000 $ 2,000

2 17,000 2,000

3 9,000 1,000

4 14,000 3,000

5 25,000 4,000


If Mookie had Retained Earnings of $88,000 at the end of year 5, what was the company's Retained Earnings at the beginning of Year 1?


A) $13,000.

B) $25,000.

C) $7,000.

D) $1,000.


 Answer: A


Learn More :