Question

van's, Inc., paid $496 in dividends and $593 in interest this past year. Common stock increased by $203 and retained earnings decreased by $129. What is the net income for the year

Answer 1

Answer:

the  net income for the year is $367

Explanation:

The computation of the net income for the year is shown below:

Decrease in retained earning  = Net Income - Dividend

- $129  =  Net income - $496

So, the net income is

= -$129 + 496

=  $367

Hence, the  net income for the year is $367

We simply applied the above formula so that the correct value could come

And, the same is to be considered