Answer:
The retained earnings for the end of the year is $900
Explanation:
Retained earning is calculated as
Beginning retained earnings + Net income - cash dividend
in the questions we were given the beginning retained earning(BRE) as $400 and Cash dividend as $100. However we were not given the actual Net income but we can derive the net income by deducting the expenses from the total revenue.
solution
Net income = revenue - expenses = $800 - $200= $600
Now we can calculate our Retained earnings by adding
Beginning retained earning $400
Net income $ 600
and deducting the cash dividend $100
$400 + $600 - $100 = $900
