Echo corporation is into farming tractor-manufacturing, Ask an Expert

Management Studies

Echo Corporation is into farming tractor-manufacturing business. At the end of year 1, their retained earnings are $250, and cash is $100. In year 2, Echo makes a net loss of $30. In year 3, Echo makes a net profit of $50 and also issues dividends of $25 to its shareholders. Due to these transactions, what will be the Retained Earnings on Echo's Balance Sheet after Year 3? What will be cash after year 3?

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