Answered

Pfizer Inc., a pharmaceutical company, reported net income for fiscal 2016 of $7,215 million, retained earnings at the start of the year of $71,993 million and dividends of $7,448 million, and other transactions with shareholders that increased retained earnings during the year by $14 million. If there were no additional transactions during the year that affected retained earnings, what was the balance of retained earnings at the end of the year? A. $ 71,774 million B. $ 38,748 million C. $124,926 million D. $ 47,729 million E. There is not enough information to calculate the amount.

Answer :

Answer:

$71,774 million

Explanation:

Data provided

Beginning retained earnings = $71,993 million

Net income = $7,215 million

Dividends = $7,448 million

Other transactions = $14 million

The computation of retained earnings is shown below:-

Beginning retained earnings + Net income - Dividends + Other transactions

= $71,993 million + $7,215 million - $7,448 million + $14 million

Balance of retained earning = $71,774 million