Sammy\'s Pizza opened on January 1, 2018. Sammy\'s reported the following for ca

Question

Sammy's Pizza opened on January 1, 2018. Sammy's reported the following for cash revenues and cash expenses for the years 2018 to 2020 2018 2019 2020 Cash Revenues $19,000 $29,000 $39,000 Cash Expenses $10,500 $13,500 $21,500 Required a. What would Sammy's Pizza report for net income and retained earnings for the years 2018, 2019, and 2020? c. Assume that Sammy's Pizza paid a $4,750 dividend to stockholders in 2019. What would Sammy's Pizza report for net income and retained earnings for 2019 and 2020? Retained Year Net Income Earnings a. 20188,500 2019 15,500 2020$ 17,500 C. | 2018 $ 8,500 2019 10,750 2020 12,750

Explanation / Answer

Year Net Income Retained Earnings ans a 2018 $8,500 $8,500 ($19000-10500) 2019 15500 $24,000 (29000-13500) 8500+15500 2020 17500 $41,500 (39000-21500) (24000+17500) ans c Year Net Income Retained Earnings 2018 $8,500 $8,500 ($19000-10500) 2019 15500 $19,250 (29000-13500) 8500+15500-4750 2020 17500 $36,750 (39000-21500) 19250+17500 If any doubt please comment. If satisfied you can rate

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