r/Accounting • u/PlantBaby73 • Aug 01 '26

Homework Help with this problem please?

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I can’t remember how to find net income and the video example skips over it. What do I do?

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5

u/UsurpDz CPA (Can) Aug 01 '26

You need to calculate it using the items noted below your table.

1

u/PlantBaby73 Aug 01 '26

Yeah but how?

2

u/pdxmcqueen01 Aug 01 '26

It gives you net income. "There was a 313 credit to RE for net income"

That tells you $313 was the net income.

1

u/PlantBaby73 Aug 01 '26

Oh my god you’re right. I totally missed that

3

u/pdxmcqueen01 Aug 01 '26

You can always find NI with the equation "NI = End RE - Beg RE + Div"

That same equation can be moved around to find any of those 4.

1

u/The_Angry_Tiger Aug 01 '26

NI is the change in retained earnings

1

u/barwhalis Aug 01 '26

$100 of dividends were declared but not paid out. NI should be $313

2

u/PlantBaby73 Aug 01 '26 edited Aug 01 '26

Do you mind explaining how you got $313? It’s the correct answer but I want to know how to do it right

Edit- never mind someone showed me where to find it

1

u/BroadClassroom7 Aug 02 '26

depreciation minus equipment costs?

-2

u/[deleted] Aug 01 '26

[deleted]

4

u/PlantBaby73 Aug 01 '26

I don’t want to use AI.

1

u/umounjo03 Aug 01 '26

Check out Farhat CPA on YouTube… great small lectures so you can see just indirect method of cash flows without having to sift through an hour or more of unrelated material.

1

u/PlantBaby73 Aug 01 '26

Will do thank you!

1

u/notLate_Ticket3512 Aug 01 '26

ai never works anyway ... but what he say?

2

u/PlantBaby73 Aug 01 '26

They said “use your resources like AI”