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The information provided for Ivanhoe Company includes:

- **Retained earnings as of January 1, 2022**: $140,400
- **Service revenue for 2022**: $432,000
- **Total expenses for 2022**: $189,000
- **Dividends paid in 2022**: $70,200

We can use this data to compute the **Retained Earnings** at the end of 2022 using the following formula:

\[
\text{Ending Retained Earnings} = \text{Beginning Retained Earnings} + \text{Net Income} - \text{Dividends}
\]

Where:
- **Net Income** is calculated as $ \text{Service Revenue} - \text{Total Expenses} $.

Let me compute the Ending Retained Earnings for Ivanhoe Company.The ending retained earnings for Ivanhoe Company at the end of 2022 is **$313,200**.

Would you like more details or have any questions? Here are 5 related questions to expand on this topic:

1. What would the ending retained earnings be if the service revenue increased by 10%?
2. How would the ending retained earnings change if the dividends were $10,000 higher?
3. Can you calculate the profit margin based on the service revenue and total expenses?
4. What happens to retained earnings if no dividends are paid?
5. How is retained earnings related to the equity section of the balance sheet?

**Tip:** Retained earnings reflect a company’s ability to reinvest profits into the business, making it a key indicator of long-term financial health.

Based on the financial data for Ivanhoe Company, compute the retained earnings at the end of 2022.

Learn how to calculate the retained earnings for Ivanhoe Company for the year 2022 using basic financial accounting formulas. The data includes retained earnings, service revenue, expenses, and dividends. Understand key financial concepts related to retained earnings and net income.

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