The Statement of Retained Earnings for Redwood Systems Ltd

Multiple Choice

The statement of retained earnings for Redwood Systems Ltd. shows a retained earnings balance of $300 million on December 31. During the year, Redwood generated net income of $60 million and paid dividends of $20 million to its stockholders. What was the beginning balance of retained earnings at the start of this year?

A) $300 million
B) $260 million
C) $380 million
D) $340 million
E) $220 million