Sammy's Pizza opened on January 1, 2018. Sammy's reported the following for cash revenues and cash expenses for the years 2018 to 2020:

Required:

a. What would Sammy's Pizza report for net income and retained earnings for the years 2018, 2019, and 2020?

c. Assume that Sammy's Pizza paid a $6,500 dividend to stockholders in 2019. What would Sammy's Pizza report for net income and retained earnings for 2019 and 2020?

Transcribed Image Text:

Cash Cash Revenues Expenses $10,500 $13,500 $21,500 2018 2019 2020 $19,000 $29,000 $39,000 Cash Cash Revenues Expenses $10,500 $13,500 $21,500 2018 2019 2020 $19,000 $29,000 $39,000

Answer rating: 100% (QA)

Year Net Income Retained Earnings ans a 2018 8500 8500 1900010500 20... View the full answer