Question

Snowberry Corporation had a net increase in Retained Earnings of $182,000 for the year. The corporation also paid $56,000 of cash dividends that had been declared in the previous year. This year, the corporation declared $50,400 of dividends but has not paid them as of year-end. Given this information, the net income for the current year must have been:

Answer 1

Answer:

$232,400

Explanation:

Data provided

Net increase in Retained Earnings = $182,000

Dividend declared for the year = $50,400

The computation of net income for the current year is shown below:-

Net income for the current year = Net increase in Retained Earnings + Dividend declared for the year

= $182,000 + $50,400

= $232,400

Therefore for computing the net income for the current year we simply added the net increase in retained earning with dividend declared for the year.