Balance of retained earnings

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On its 1999 balance sheet, Sherman Books showed a balance of retained earnings equal to $510 million. On its 2000 balance sheet, the balance of retained earnings was also equal to $510 million. Which of the following statements is most correct? Show your calculations.

a. The company must have had net income equal to zero in 2000.

b. The company had a profit in 2000 but did not pay a dividend in 2000.

c. the company's net income in 2000 was $200 million.

d. If the company lost money in 2000, they must have paid a dividend.

e. None of the statements above is correct.

Reference no: EM13125439

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