Question

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Problem 10-4A Analyze the stockholders' equity section (LO10-7)

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The stockholders’ equity section of Velcro World is presented here.

VELCRO WORLD
Balance Sheet (partial)
($ and shares in thousands)
Stockholders' equity:
Preferred stock, $1 par value	$	5,300
Common stock, $1 par value		23,000
Additional paid-in capital		728,600
Total paid-in capital		756,900
Retained earnings		281,000
Treasury stock, 10,000 common shares		(250,000	)
Total stockholders' equity	$	787,900

Based on the stockholders' equity section of Velcro World, answer the following questions. Remember that all amounts are presented in thousands.

Problem 10-4A Part 4

4. If retained earnings at the beginning of the period was $243 million and $23 million was paid in dividends during the year, what was the net income for the year? (Enter your answer in million (i.e., 5,000,000 should be entered as 5).)

Answer 1

	Retained Earnings as the end of the year	$                         281	million
Less:	Retained Earnings as the Beginning of the year	$                       -243	million
Add:	Dividend Paid	$                           23	million
	Income for the Year	$                           61	million