During 2012, Bascom Bakery paid out $33,525 of common dividends. It ended the year with $197,500 of retained earnings versus the prior year's retained earnings of $159,600. How much net income did the firm earn during the year?
A) $71,425
B) $74,996
C) $78,746
D) $82,683
E) $86,818

Question

Quizplus · Accepted Answer

Net income = Retained earnings, end of year - Retained earnings, beginning of year + Dividends= $197,500 - $159,600 + $33,525= $71,425

During 2012, Bascom Bakery Paid Out $33,525 of Common Dividends