The balance of retained earnings at the beginning of the year was $475,000, and the balance at the end of the year was $550,000. Cash dividends declared during the year were $35,000. The amount of net income for the year was

Question

Quizplus · Accepted Answer

The net income for the year is equal to the ending balance of retained earnings minus the beginning balance of retained earnings, plus the cash dividends declared during the year. Therefore, the net income for the year is $550,000 - $475,000 + $35,000 = $110,000.

The Balance of Retained Earnings at the Beginning of the Year