During 2011 Baird paid dividends to its stockholders of 500

During 2011, Baird paid dividends to its stockholders of $500. Given that ending retained earnings was $780, what was Baird\'s net income for the 2011 accounting period?

On January 1, 2011, Baird Company had beginning balances as follows:

Assets = $1,675

Liabilities = $600

Common Stock = $570

During 2011, Baird paid dividends to its stockholders of $500. Given that ending retained earnings was $780, what was Baird\'s net income for the 2011 accounting period?

Solution

Beginning retained earnings = 1675-600-570= 505 Net income = 780+500-505= 775