Ask Question
13 February, 19:54

Ullrich Printing Inc. paid out $21,750 of common dividends during the year. It ended the year with $187,500 of retained earnings versus the prior year's retained earnings of $132,250. How much net income did the firm earn during the year

+5
Answers (1)
  1. 13 February, 23:30
    0
    The options are:

    $77,000 $80,850 $84,893 $89,137 $93,594

    The correct option is the first one,$77,000

    Explanation:

    The net income can be ascertained using the ending retained earnings formula provided thus:

    ending retained earnings=beginning retained earnings+net income-dividends

    ending retained earnings is $187,500

    beginning retained earnings is $132,250

    dividends paid during the year was $21,750

    By changing the subject of the formula, net income formula is derived:

    net income=ending retained earnings-beginning retained earnings+dividends

    net income=$187,500-$132,250+$21,750=$ 77,000.00
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Ullrich Printing Inc. paid out $21,750 of common dividends during the year. It ended the year with $187,500 of retained earnings versus the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers