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Heedy Company had the following account balances in 2015 and 2016 tively. Assuming dividends of $20,000 were paid in 2016, how much was net income 2016 2015 42,000 $ 40,000 210,000 Capital Stock Retained Earnings Total Stockholders’ Equity 314.000 250.000
Expert Answer
Ending retained earnings balance=($314000-$42000)=$272000.
| Particulars | Amount($) |
| Beginning retained earnings | $210,000 |
| Add:net income(balance)(272000+_20000-210,000) | $82000. |
| Less:dividends | ($20,000) |
| Ending retained earnings balance | $272000 |
