The following information is provided by the Ferrara Corporation: $$\begin{array} { l l }
\text { Beginning retained earnings } & \$ 50,000 \
\text { Ending retained earnings } & 70,000 \
\text { Dividends declared and paid } & 10,000 \
\text { Revenue } & 50,000
\end{array}$$ What is the net income for Ferrara Corp.?
A) $10,000
B) $20,000
C) $30,000
D) Unable to tell from the information provided.

Question

The following information is provided by the Ferrara Corporation: $$\begin{array} { l l } 
\text { Beginning retained earnings } & \$ 50,000 \
\text { Ending retained earnings } & 70,000 \
\text { Dividends declared and paid } & 10,000 \
\text { Revenue } & 50,000
\end{array}$$ What is the net income for Ferrara Corp.?
A) $10,000
B) $20,000
C) $30,000
D) Unable to tell from the information provided.

Quizplus · Accepted Answer

Net income can be calculated using the formula: Ending Retained Earnings = Beginning Retained Earnings + Net Income - Dividends. Plugging in the given values: $70,000 = $50,000 + Net Income - $10,000. Solving for Net Income gives $30,000.

The Following Information Is Provided by the Ferrara Corporation What Is the Net Income for Ferrara Corp