Answer:
$20,000
Explanation:
Retained earnings are company profits that have not been distributed as that dividends. Retained earnings plus dividends make up the net income.
Retained earnings equal to net income minus dividends paid out.
Closing retained earning = opening retained earning + income - dividends.
$75,000= $25,000 + income
Income = $75,000 -$25,000
=$50,000
Dividends will be $70,000- $50,000
=$20,000
