Problem
Tentco reported the following amounts in various statements included in its 2016 annual report. (All amounts are stated in millions of dollars.)
Net income for 2016 $142 Cash dividends declared in 2016 15 Retained earnings, December 31, 2015 $ 95
REQUIRED:
(1) Prepare a Statement of retained earnings for the year ended December 31, 2016.
(2) Assume that Tentco presents a statement of stockholders' equity rather than a statement of retained earnings in its annual report. Explain how the information differs between the two statements.