Answer to Question #70401 in Finance for Shannon
Thelma and Louie, Inc., started the year with a balance of retained earnings of $550 million and ended the year with retained earnings of $600 million. The company paid dividends of $40 million to the preferred stockholders and $80 million to common stockholders. Calculate Thelma and Louie’s net income for the year. (Enter your answer in millions of dollars.) Net income $
Net income = retained earnings + dividends, then retained earnings = $600-$550=$50, 2) Dividends = $40+$80=$120, 3)net income=$120+$50=$170.
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