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Calculate the Net Income for Green Thumb,Inc

Question 111

Essay

Calculate the net income for Green Thumb,Inc.Then,assuming the company had retained earnings of $162,000 as of January 1,2011,and paid out $46,000 in dividends during the year,prepare its statement of retained earnings.
GREEN THUMB, INC:
Income Statement
For the Year Ended December 31, 2011

 Revenues  Sales Revenue $1,865,300 Total Revenues 1,865,300 Expenses  Wages Expense 724,800 Advertising and Promotion Expenses 262,500 Other Selling and Administrative Expenses 350,800 Interest Expense 43,900 Income Tax Expense 56,500 Other Expenses 122.400 Total Expenses 1,560,900 Net Income $?\begin{array}{lr}\text { Revenues }\\\text { Sales Revenue }&\$1,865,300\\\text { Total Revenues }&1,865,300\\\text { Expenses }\\\\\text { Wages Expense } & 724,800 \\\text { Advertising and Promotion Expenses } & 262,500 \\\text { Other Selling and Administrative Expenses } & 350,800 \\\text { Interest Expense } & 43,900 \\\text { Income Tax Expense } & 56,500 \\\text { Other Expenses } & 122.400 \\\text { Total Expenses } & 1,560 ,900 \\\\\text { Net Income }&\$?\end{array}

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Net income is $304,4...

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