Q1) Compute:
1) net income
2) Retained earnings based on information given below. Make sure to illustrate all work and label each answer clearly.
Sales
|
200,000
|
Cash
|
50,000
|
Total Liabilities
|
430,000
|
Operating Expenses
|
135,000
|
Common stock
|
20,000
|
Beginning retained earnings
|
500,000
|
Dividends paid
|
25,000
|