Question

Wilton Corporation had beginning retained earnings of $724,000 and ending retained earnings of $833,000. During the year, it issued common stock totaling $47,000 and paid dividends of $50,000. What was its net income for the year?

Answer 1

Answer:

Explanation:

The ending retained earnings =  beginning retained earnings + net income - Dividends Paid

Net income = ending retained earnings - beginning retained earnings + Dividends Paid

                   = $833,000 - $724,000 + $50,000

                   = $159000.

Therefore, the net income for the year is $159000.