Accounting Connection- Information from Mrs. Shah's Cookies' statement of retained earnings for 2014 follows.
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Dividends
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$ 0
|
|
Net income
|
?
|
|
Retained earnings, January 31, 2014
|
159,490
|
|
Retained earnings, January 31, 2013
|
102,403
|
Prepare Mrs. Shah's Cookies' statement of retained earnings. You will need to solve for the amount of net income. What is retained earnings? Why might the board of directors decide not to pay any dividends?