ABC Limited, a publicly traded company, prepared its financial statements for the year ending December 31, 2022. The company reported the following changes in its equity accounts: Beginning Retained Earnings: $1,000,000 Net Income for the Year: $300,000 Dividends Paid: $50,000 Issuance of New Shares: $200,000 What is the ending balance of retained earnings that will appear on the Statement of Changes in Equity for ABC Limited at the end of the year?

Exam

CFA Level 1

Section

Difficulty

Financial Reporting and Analysis

Calculating Ending Retained Earnings

Easy Financial Statements Statement Of Changes In Equity

ABC Limited, a publicly traded company, prepared its financial statements for the year ending December 31, 2022. The company reported the following changes in its equity accounts:

Beginning Retained Earnings: $1,000,000
Net Income for the Year: $300,000
Dividends Paid: $50,000
Issuance of New Shares: $200,000

What is the ending balance of retained earnings that will appear on the Statement of Changes in Equity for ABC Limited at the end of the year?

$1,250,000

$1,300,000

$1,350,000

Hint

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