Roger Stones, Inc. reported $26,000,000 retained earnings at the year-end. It paid out $4,000,000 in dividends....

Roger Stones, Inc. reported $26,000,000 retained earnings at the year-end. It paid out $4,000,000 in dividends. What was its net income if the prior year’s retained earnings were $19,500,000?

		$12,100,000
		$10,500,000
		$9,600,000
		$10,900,000

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Expert Solution

ANSWER DOWN BELOW. FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE.

Net Income = year end balance + dividend distribution - year open balance

= 26,000,000+ 4,000,000- 19,500,000

= $10,500,000

Answer: $10,500,000

jeff jeffy answered 1 year ago

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