Question

Pelican, Inc. had revenues of $395,000, expenses of $155,000, and dividends of $54,000 during the current year. Based on the given information, which of the following statements is true?
a. Net income for the current year totaled $186,000.
b. Total retained earnings decreased by $186,000 during the current year.
c. Total retained earnings increased by $240,000 during the current year.
d. Net income for the current year totaled $240,000

Answer 1

Answer:

Net income = revenue - expenses - dividends paid

Net income = $395,000 - $155,000 - $54,000

Net income = $186,000

The net income for the current year is $186,000.

The correct answer is A

Explanation:

Net income is the excess of sales over expenses and dividends paid.