Sammys Pizza opened on January 1, 2016. Sammys reported the following for cash revenues and cash expenses
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a. What would Sammys Pizza report for net income and retained earnings for the years 2016, 2017, and 2018?
b. Explain the difference between net income and retained earnings.
c. Assume that Sammys Pizza paid a $5,000 dividend to stockholders in 2017. What would Sammys Pizza report for net income and retained earnings for 2017 and 2018?
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...
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Related Book For
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
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