Compute the net income for the year Assumethat retainedearningsincreased by $62,850 from June 30 ofyear 1 to June 30 of year 2. A cashdividend of $13,500 was declared andpaid during the year. Compute the netincome for the year.

Explanation of Net Income: This represents the total earnings or profit of a company after deducting…

Answered: Assume that retained earnings increased…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter6: Managing Cash Flow

Section: Chapter Questions

Problem 4DQ

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Assume that retained earnings increased by $62,850 from June 30 of year 1 to June 30 of year 2. A cash dividend of $13,500 was declared and paid during the year. Compute the net income for the year.