Purrfect Pets had a beginning balance in its retained earnings account of $385,600.During the year,the company declared and paid a $4,700 dividend,and at the end of the year,it reported retained earnings of $399,860.The company's net income for the year was:

Question

Quizplus · Accepted Answer

To calculate the net income for the year, we need to use the formula:
Net Income = Beginning Retained Earnings + Net Income - Dividends - Ending Retained Earnings

Plugging in the values given,
Net Income = $385,600 + Net Income - $4,700 - $399,860
Simplifying:
Net Income = $18,960

Therefore, the net income for the year was $18,960, which corresponds to choice B.

Purrfect Pets Had a Beginning Balance in Its Retained Earnings