1. During 2014, BBB paid out $33,525 of common dividends. It ended the year with $197,500 of retained earnings vs. the prior year’s retained earnings of $159,600. How much net income did the firm earn during the year?
2. Calculating Future Values. You have just made your first $1,400 contribution to your individual retirement account (IRA). Assume you earn a 11% rate of return and make no additional contributions. When you retire in 25 years, the account will be worth $ _____________ If you wait 5 years before making your initial contribution, the account will be worth $________________