Fine Breads Inc. paid out $26,000 common dividends during 2005, and it ended the year with $150,000 of retained earnings. The prior year’s retained earnings were $145,000. What was the firm's 2005 net income?

Answer 1

Answer is $31,000

$150,000 + $26,000 = $176,000

$176,000 - $145,000 = $31,000