A companys retained earnings incressed 375 000 last year and

A company\'s retained earnings incressed $375 000 last year and its sses incrsed $973 000 The co declared a $79000 cash dividend during the year What was last ye O $375.000 ?$454,000 O $296000 O $519.000

Solution

The answer is \"$454,000\"

Increase is retained earnings = Net income - cash dividend

So, Net income = Increase in retained earnings + cash dividend = 375,000 + 79,000 = $454,000