During 2012,Bascom Bakery Inc.paid out $21,750 of common dividends.It ended the year with $187,500 of retained earnings versus the prior year's retained earnings of $132,250.How much net income did the firm earn during the year?

A) $77,000
B) $80,850
C) $84,893
D) $89,137

Question

Sehba Hussain · Accepted Answer

Final Answer : A, Explanation :  Net income = Retained earnings, end of year - Retained earnings, beginning of year + Dividends= $187,500 - $132,250 + $21,750= $77,000

During 2012,Bascom Bakery Inc.paid out $21,750 of common dividends.It ended the year with $187,500 of retained earnings versus the prior year's retained earnings of $132,250.How much net income did the firm earn during the year?

A) $77,000
B) $80,850
C) $84,893
D) $89,137

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Related questions

During 2012,Bascom Bakery Inc.paid out $21,750 of common dividends.It ended the year with $187,500 of retained earnings versus the prior year's retained earnings of $132,250.How much net income did the firm earn during the year?A) $77,000B) $80,850C) $84,893D) $89,137

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Learning Objectives

Learning Objectives

Related questions

During 2012,Bascom Bakery Inc.paid out $21,750 of common dividends.It ended the year with $187,500 of retained earnings versus the prior year's retained earnings of $132,250.How much net income did the firm earn during the year?

A) $77,000
B) $80,850
C) $84,893
D) $89,137