Thelma and Louie's Inc started the year with a balance of retained earnings of $547 million and ended the ear with retained earnings of $594 million. The company paid dividends of $37 million to the preferred stockholders and $77 million to common stockholder.

Calculate thelma and louie's net income to common stockholders for the year. (Enter in millions of dollars)
Net Income in millions.

Hi, I need the problem worked if you can show me thank you.

(547+594)/(37-77)= Net Income: $486.05 million dollars.

Am I on the right track?

To calculate the net income to common stockholders, we can use the formula:

Net Income = Retained Earnings at the end of the year - Retained Earnings at the beginning of the year + Dividends Paid to Preferred Stockholders + Dividends Paid to Common Stockholders

Given information:
Retained Earnings at the beginning of the year = $547 million
Retained Earnings at the end of the year = $594 million
Dividends Paid to Preferred Stockholders = $37 million
Dividends Paid to Common Stockholders = $77 million

Substituting the given values in the formula:

Net Income = $594 million - $547 million + $37 million + $77 million
Net Income = $47 million + $37 million + $77 million
Net Income = $161 million

Therefore, Thelma and Louie's net income to common stockholders for the year is $161 million.

To calculate Thelma and Louie's net income to common stockholders for the year, we need to deduct the dividends paid to common stockholders from the change in retained earnings.

The change in retained earnings can be calculated as follows:
Change in Retained Earnings = Ending Retained Earnings - Beginning Retained Earnings

Change in Retained Earnings = $594 million - $547 million
Change in Retained Earnings = $47 million

Next, we need to subtract the dividends paid to common stockholders from the change in retained earnings:

Net Income to Common Stockholders = Change in Retained Earnings - Dividends to Common Stockholders

Dividends to Common Stockholders = $77 million

Net Income to Common Stockholders = $47 million - $77 million
Net Income to Common Stockholders = -$30 million

Therefore, Thelma and Louie's net income to common stockholders for the year is -$30 million.