Energy Corporation, a U.S.diversified power management company, reported a balance in Retained Earnings of $2,800 million at the beginning of 2013 and $3,300 million at the end of 2013.Based on Energy Corporation's financial reports for fiscal 2013, it reported dividends declared and paid of $250 million for 2013.Compute the amount of net income for 2013.(Energy Corporation applies U.S.GAAP, and reports its results in millions of U.S.dollars.)
A)-$250 million
B)$250 million
C)$550 million
D)$750 million
E)none of the above

Question

Quizplus · Accepted Answer

The net income for 2013 can be calculated by taking the ending Retained Earnings balance, subtracting the beginning balance, and then adding back the dividends declared and paid. This gives us ($3,300 million - $2,800 million) + $250 million = $750 million.