How do I calculate retained earningsSolutionAnswer a 437000

How do I calculate retained earnings??

Solution

Answer = a)$ 437000

Retained earnings at December 31, 2017 = Net income at end 2015 + Net income at end of 2016 + Net Income at end of 2017 - Dividend paid Each year to each stockholder

= 92000 + 188000 + 217000 - 3 * ( 2 * 10000)

= $437000