Jenning inc. paid out total dividends equal to $ 11,124,200 in 2008. If Jennings reported Retained earnings of $320,868,600 for 2007 and retained earnings of $350,290,100 for 2008, what was Jennings reported net income in 2008?
To find Jennings' reported net income in 2008, we can follow the formula:
Net Income = Retained Earnings (End of Year) - Retained Earnings (Beginning of Year) + Dividends
Given:
Retained Earnings (Beginning of Year) for 2007 = $320,868,600
Retained Earnings (Beginning of Year) for 2008 = $350,290,100
Dividends paid in 2008 = $11,124,200
We can plug in the values and calculate:
Net Income = $350,290,100 - $320,868,600 + $11,124,200
Net Income = $29,421,500 + $11,124,200
Net Income = $40,545,700
Therefore, Jennings' reported net income in 2008 was $40,545,700.