Question

At the end of the year, A company's retained earnings increased by $375,000 and its assets increased by $973,000. The company declared a $79,000 cash dividend during the year. What was the company’s net income?

Answer 1

The company net income was = 375.000 + 79.000

Step-by-step explanation:

If the retained earnings increased by $375.000 it means that the net income of the operations during the year was at least that amount, but if furthermore the company pay dividends it must be added to the retained earnings to determined the total Company's Net Income which is $ 454.000.