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The beginning and ending balances of retained earnings for the year were $55,000 and $82,000, respectively. If dividend payments during the year were $8,000, determine the net income or net loss for the year.

Respuesta :

Answer:

$35,000

Explanation:

We can use the following simple formula:

Beginning retained earnings balance = Ending retained earnings balance − Net Income + Dividends

Therefore,

Net Income = Ending retained earnings balance -  Beginning retained earnings balance + Dividends

Net Income = $82,000 - $55,000 + $8,000

Net Income = $35,000.

Therefore, net income is equal to $35,000.

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