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nyeducator.com/reader/web/1380da/topic02/nq6oi/ ay MyEducator nj Bus. Comp G Evertrite-Make s.. ra Portage Pacide,por..1 Access|ng Topic 2. UGAR Corporate Income Statement Curront Year LUGAR Corporation -current Year Income Statement (in SMillions) Sales Cost of Goods Sold Depreciation Earnings Before Interest and Taxes Paid Interest Earnings Beforse Taxes Taxes Net Income $1,994 1,005 251 738 220 $1,423 $484 939 Using LUGAR Corporation\'s income statement, if the firm\'s last year\'s retained earnings equalled $3,250 and the current year\'s retained earning equalled $4,020, what is the addition to retained earnings in millions? $1,330 $169 -, $939 $770

Solution

Answer: $770 Calculations: Addition to retained earnings = Ending balance of retained earnings - Beginning balance of retained earnings = 4020-3250 = $770.