Problem 3-8 Statement of Stockholders\' Equity Computer World Inc. paid out $40.

Question

Problem 3-8
Statement of Stockholders' Equity

Computer World Inc. paid out $40.3 million in total common dividends and reported $101 million of retained earnings at year-end. The prior year's retained earnings were $66.7 million. What was the net income? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.

Answer: $____________

Please show solution. THanks.

Explanation / Answer

Answer: $74,600,000

retained earnings at year-end $101 million

Add:total common dividends $40.3 million

Less:prior year's retained earnings $66.7 million

Net Income $74.60million

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