The ending Retained Earnings balance of Juan's Mexican Restaurant chain increased by $3.2 million from the beginning of the year.The company declared a dividend of $1.3 million during the year.What was the net income earned during the year?

Question

Quizplus · Accepted Answer

The net income earned during the year can be calculated as follows:

Net Income = Ending Retained Earnings - Beginning Retained Earnings + Dividends 
Net Income = $3.2 million - $0 + $1.3 million 
Net Income = $4.5 million

Therefore, the best choice is C, as it provides the correct net income earned during the year.

The Ending Retained Earnings Balance of Juan's Mexican Restaurant Chain