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Anna [14]
4 years ago
11

Willie Company's retained earnings increased $20,000 during 2016. What was Willie's 2016 net income or loss given that Willie de

clared $25,000 of dividends during 2016?
Business
2 answers:
rusak2 [61]4 years ago
8 0

Answer:

45000

Explanation:

ahrayia [7]4 years ago
3 0

Answer:

The correct answer is $45,000

Explanation:

Willie Company's during the 2016 year:

  • Willie Company's retained earnings increased $20,000 during 2016
  • Willie declared $25,000 of dividends during 2016

In order to know the net income, is necessary to sum the retained earnings and the declared dividends.

$20,000 (retained earnings)  + $25,000 ( declared dividends) = $45,000 net income

Willie's 2016 net income was $45,000

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