Blazon Corporation's retained earnings increased $79,000 during 2011.Blazon declared $19,000 of dividends and paid $15,000 of the dividends declared during 2011.How much was Blazon's 2011 net income assuming that Blazon's stockholders invested an additional $30,000 during 2011?

Question

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2011 net income = $98,000 = $79,000 + $19,000 The change in retained earnings equals net income ($98,000) minus dividends declared ($19,000).

Blazon Corporation's Retained Earnings Increased $79,000 During 2011