For the current year, net income of Carol Company is $20,000 and dividends declared are $6,000; therefore, retained ear

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answerhappygod
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For the current year, net income of Carol Company is $20,000 and dividends declared are $6,000; therefore, retained ear

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For the current year, net income of Carol Company is $20,000 and dividends declared are
$6,000; therefore, retained earnings have increased $26,000 during the year.

Answer: FALSE
Explanation: Retained earnings = Net income less dividends declared. Therefore, retained
earnings have increased by $20,000 less $6,000 = $14,000.
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