Question

The statement of retained earnings for TGD Company reports the following Beginning capital $ 245,687 Withdrawal...

The statement of retained earnings for TGD Company
reports the following
Beginning capital $ 245,687
Withdrawal $     38,564
Income $     77,195
What percent of the income was retained by the
company?
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Answer #1

Beginning capital balance

$ 245,687.00

Add: net income

$    77,195.00

Less: Withdrawals

$ (38,564.00)

Ending capital balance

$ 284,318.00

Working

(A)

Income earned

$    77,195.00

(B)

Income distributed as dividend

$    38,564.00

C=A-B

Income retained

$    38,631.00

D= C/A x 100

% of income retained

50.04%

Income retained the amount of earned profits reinvested into the business which is used for investments and other activities of the company.

% of income retained by the company = 50.04%

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