Lauras Flowers opened on January 1, 2013. Lauras reported the following for cash revenues and cash expenses

Question:

Laura€™s Flowers opened on January 1, 2013. Laura€™s reported the following for cash revenues and cash expenses for the years 2013 to 2015:

Required
a. What would Laura€™s Flowers report for net income and retained earnings for the years 2013, 2014, and 2015?
b. Explain the difference between net income and retained earnings.
c. Assume that Laura€™s Flowers paid a $6,000 dividend to stockholders in 2014. What would Laura€™s Flowers report for net income and retained earnings for 2014 and2015?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...