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Lelu [443]
3 years ago
11

Thelma and Louie, Inc., started the year with a balance of retained earnings of $547 million and ended the year with retained ea

rnings of $594 million. The company paid dividends of $37 million to the preferred stockholders and $77 million to common stockholders.
Calculate Thelma and Louie’s net income for the year.
Business
1 answer:
Elis [28]3 years ago
8 0

Answer:

$161 million

Explanation:

Given that,

Opening Retained earnings balance = $547 million

Ending retained earnings balance = $594 million

Dividends paid to preferred stockholders = $37 million

Dividends paid to common stockholders = $77 million

Net Income:

= Change in Retained earnings + Preferred Stock Dividend + Common Stock Dividend

= ($594 million - $547 million) + $37 million + $77 million

= $47 million + $37 million + $77 million

= $161 million

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