A company's retained earnings increased $375,000 last year and its assets increased $973,000. The company declared a $7

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A company's retained earnings increased $375,000 last year and its assets increased
$973,000. The company declared a $79,000 cash dividend during the year. What was last year's
net income?

A) $296,000.
B) $375,000.
C) $454,000.
D) $519,000.
Answer: C
Explanation: The $375,000 increase in retained earnings = Net income of $454,000 − Dividends
of $79,000 or, alternatively, $375,000 + $79,000 = $454,000.