During 2019,Bascom Bakery paid out $33,525 of common dividends.It ended the year with $215,000 of retained earnings versus the prior year's retained earnings of $159,600.How much net income did the firm earn during the year?

Question

Quizplus · Accepted Answer

The net income is calculated by adding the dividends paid to the increase in retained earnings: $215,000 - $159,600 + $33,525 = $88,925.

During 2019,Bascom Bakery Paid Out $33,525 of Common Dividends