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.