During 2011, Bascom Bakery Paid Out $33,525 of Common Dividends

question 33

Multiple Choice

During 2011, Bascom Bakery paid out $33,525 of common dividends. It ended the year with $197,500 of retained earnings versus the prior year's retained earnings of $159,600. How much net income did the firm earn during the year?

• A) $71,425
• B) $74,996
• C) $78,746
• D) $82,683
• E) $86,818

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Definitions:

Cash Account

A financial record that tracks all cash receipts and disbursements within a business or organization.

Collections

The process of pursuing and receiving payments owed to a business from its customers or debtors.

Postage Stamps

Adhesive paper evidence for payment of postage, used to indicate that the postage fee for sending an item through the postal service has been paid.

Accountant

A professional who manages, audits, and analyzes financial records and transactions for individuals, businesses, and organizations.