Retained earnings, February 1, 2013. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $48,110,000
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,330,000
Cash dividends declared. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000,000
Stock dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000
Prepare a retained earnings statement for the fiscal year ended January 31, 2014.
Answer:
ATLAS PUMPS CORPORATION
Retained Earnings Statement
For the Year Ended January 31, 2014
Retained earnings, February 1, 2013 $48,110,000
Net income $9,330,000
Less dividends declared 2,400,000
Increase in retained earnings 6,930,000
Retained earnings, January 31, 2014 $55,040,000