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Evgesh-ka [11]
4 years ago
9

At the beginning of the year, paid-in capital was $164 and retained earnings was $94. During the year, the stockholders invested

$48 and dividends of $12 were declared and paid. Retained earnings at the end of the year were $104.
Net income for the year was:_______
Business
1 answer:
Salsk061 [2.6K]4 years ago
5 0

Answer:

$22

Explanation:

From the question above, the paid in capital at the beginning of a year was $164

Retained earnings was $94

During the year the amount invested by stockholders was $48 and a dividend of $12 was declared and paid.

At the end of the year the retained earnings was $104

Therefore, the net income for the year can be calculated as follows

Net income= Retained earnings at the end of the year-retained earnings at the beginning of the year+dividend

Net income= $104-$94+$12

= $22

Hence the net income for the year was $22

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