Income and Retained Earnings Relationships
Response to the following problem:
Assume that retained earnings increased by $375,000 from December 31, 2008, to December 31, 2009, for Jarvie Distribution Corporation. During the year, a cash dividend of $135,000 was paid.
1. Compute the net income for the year.
2. Assume that the revenues for the year were $830,000. Compute the expenses incurred for the year.