I am reading about cash flow statements. However, I am confused by the examples given. The net income is given to me of $108,00; however, this is not the difference between the retained earnings from the two years given on the comparative balance sheet. Am I supposed to be able to determine the net income from a comparative balance sheet? How do I get the net income from comparative years?

Retained earnings:
Beginning Balance + Net Income - Dividends Declared = Ending Balance

The dividends declared is accounting for part of the change in retained earnings.