How do you solve for net income if you only have retained earnings information and no dividend information?
I have beginning retained earnings and ending retained earnings and no dividend information. How do I solve for net income using the equation Beginning retained earnings + NI – dividends = ending retained earnings?
You have dividend information that says "dividend is 10% of net income". Can you solve for net income?
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One Response
6.27.2009
You can't…….but 2 things, if there is no dividend information at all your fair to assume there was no issuance (maybe a declaration), secondly the question may say just that verabally, something like "No dividend information exists" etc. meaning there is nothing to report. That would let you solve for N/I.