Question

in the statement of stockholders equity, retained earnings had a beginning balance of $61500. during the period, the company reports a net loss of $10500 and net cash outflows of $15500. the ending balance in the retained earnings account is: multiple choice $61500 $51000 $35500 $46000

Explanation:

Step1: Recall the formula for ending retained earnings

Ending Retained Earnings = Beginning Retained Earnings - Net Loss. Net cash out - flows are not relevant for retained - earnings calculation.
$Ending\ Retained\ Earnings=Beginning\ Retained\ Earnings - Net\ Loss$

Step2: Substitute the given values

Beginning Retained Earnings = $61500$, Net Loss = $10500$.
$Ending\ Retained\ Earnings = 61500-10500$
$Ending\ Retained\ Earnings=51000$

Answer:

$51000$ (corresponding to the second option in the multiple - choice list)