The correct answer is C) net sales.
The statement of retained earnings typically includes the following:
- A. Net income: This represents the profit earned by the company during a specific period.
- B. Dividends: These are the distributions of profits to shareholders.
- D. Beginning retained earnings: This is the balance of retained earnings at the beginning of the period.
However, the statement of retained earnings does not include net sales. Net sales are usually reported on the income statement, which shows the revenues generated from the company's primary operations. The statement of retained earnings focuses on changes in retained earnings, primarily driven by net income and dividends.