Computer World inc. paid out $22.5 million in total common dividends and reported $278.9 million of retained earnings at year-end. The prior year's retained earnings were $212.3 million. What was the net income? Assume that all dividends declared actually paid.

Question

Computer World inc. paid out $22.5 million in total common dividends and reported $278.9 million of retained earnings at year-end. The prior year's retained earnings were $212.3 million.  What was the net income? Assume that all dividends declared actually paid.

Gloria · Accepted Answer

Previous retained earnings + net income - dividends = new retained earnings, so 212.3 + x - 22.5 = 278.9 278.9 + 22.5 - 212.3 = net income $89.1 million is the net income

Nikki · Answer

its 44.1 million