Revenues were $170,000, expenses were $90,000, and cash dividends were $30,000. What was the net income and the change in retained earnings for the period?

Question

Quizplus · Accepted Answer

Net income can be calculated by subtracting expenses from revenues. Therefore, net income = $170,000 - $90,000 = $80,000. The change in retained earnings can be calculated by subtracting dividends from net income. Therefore, change in retained earnings = $80,000 - $30,000 = $50,000. Hence, the correct option is B - Net income was $80,000; the change in retained earnings was $50,000.

Revenues Were $170,000, Expenses Were $90,000, and Cash Dividends Were