Intel reports retained earnings at the end of fiscal 2016 of $40,747 million and retained earnings at the end of fiscal 2015 of $37,614 million. The company reported dividends of $4,925 million and other transactions with shareholders that reduced retained earnings during the year by $2,258 million.
How much net income did the firm report in fiscal 2016?
A) $ 3,133 million net income
B) $ 3,133 million net loss
C) $10,316 million net income
D) $10,316 million net loss
E) None of the above

Question

Quizplus · Accepted Answer

The net income can be calculated by adding the dividends and other transactions to the increase in retained earnings, then solving for net income: ($40,747 million - $37,614 million) + $4,925 million + $2,258 million = $10,316 million net income.

Intel Reports Retained Earnings at the End of Fiscal 2016