Atthe close of 2016 comoany xyz had 126,532 in retained earnings and5,458 in dividends....

At the close of 2016 comoany xyz had 126,532 in retained earnings and 5,458 in dividends. In 2017 the company paid 3456 in dividends had 146,750 in retained earnings. esitmate the dollar amount of net income for 2017?

net income

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Expert Solution

Dividend paid during year 2017 = $3456

Addition to Retained Earnings during year 2017 = Retained Earnings at the end of year 2017 - Retained Earnings at the end of year 2016

Addition to Retained Earnings during year 2017 = $146,750 - $126,532

Addition to Retained Earnings during year 2017 = $20,218

Net Income for 2017 = Addition to Retained Earnings during year 2017 + Dividend paid during year 2017

Net Income for 2017 = $20,218 + $3456

Net Income for 2017 = $23,674

jeff jeffy answered 2 years ago

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