Answer:
The correct answer is $45,000
Explanation:
Willie Company's during the 2016 year:
- Willie Company's retained earnings increased $20,000 during 2016
- Willie declared $25,000 of dividends during 2016
In order to know the net income, is necessary to sum the retained earnings and the declared dividends.
$20,000 (retained earnings) + $25,000 ( declared dividends) = $45,000 net income
Willie's 2016 net income was $45,000
