XYZ Holdings prepared its financial statements for the year ended December 31, 2022. The company reported the following information regarding its equity accounts: Beginning Retained Earnings: $200,000 Net Income: $50,000 Dividends Declared: $30,000 Share Capital Issued: $20,000 Other Comprehensive Income: $5,000 Based on this information, what is the Ending Retained Earnings for XYZ Holdings as reported in the Statement of Changes in Equity ?

Exam

CFA Level 1

Section

Difficulty

Financial Reporting and Analysis

Calculating Ending Retained Earnings

Medium Financial Statements Statement Of Changes In Equity

XYZ Holdings prepared its financial statements for the year ended December 31, 2022. The company reported the following information regarding its equity accounts:

Beginning Retained Earnings: $200,000
Net Income: $50,000
Dividends Declared: $30,000
Share Capital Issued: $20,000
Other Comprehensive Income: $5,000

Based on this information, what is the Ending Retained Earnings for XYZ Holdings as reported in the Statement of Changes in Equity?

Ending Retained Earnings of $225,000

Ending Retained Earnings of $240,000

Ending Retained Earnings of $205,000

Hint

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