Asked by
Adriana Jimenez
on Oct 28, 2024Verified
A company's retained earnings increased $375,000 last year and its assets increased $973,000.The company declared a $79,000 cash dividend during the year.What was last year's net income?
A) $296,000.
B) $375,000.
C) $454,000.
D) $519,000.
Retained Earnings
The portion of a company's profits not distributed to shareholders as dividends but retained for reinvestment in the business or to pay debt.
Net Income
The net income of a company following the subtraction of all costs and taxes from the gross revenue.
Cash Dividend
A cash dividend is a payment made by a company out of its profits to shareholders in the form of cash.
- Compute the net earnings from a provided set of financial data.
Verified Answer
FN
Learning Objectives
- Compute the net earnings from a provided set of financial data.