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View Full Version : How to find net income with the stockholder equity statement? (Finance)


cmac2004
Sep 16, 2009, 06:58 PM
At the end of last year jefferson motors had 100,000 shares of common stock with a balance of $185,000, retained earnings of $710,000, and total stockholders equity of $895,000. This year jefferson paid a dividend of $80,000 and its end of year retained earnings were $800,000. What was the net income of jefferson motors for this year?

morgaine300
Sep 16, 2009, 08:36 PM
Beginning Balance of Retained Earnings
+ Net Income
- Dividends
= Ending Balance of Retained Earnings

Only two things affect retained earnings: net income (or loss) and dividends. You have 3 of the 4 figures. If you plot in what you know, you can work to the only one you don't know.