Assume that the following amounts arc known for Miles Company for the current year:
Retained Earnings, beginning balance .............. $420,000
Retained Earnings, ending balance .................. 500,000
Cash dividends declared .............................. 100,000
Fair value of large stock dividend declared ........ 50,000
Dividend Payable, beginning balance .............. 90,000
Dividend Payable, ending balance .................. 80,000
Required
1. Assume that the only other amount that affected Retained Earnings during the year was the net income. Compute the net income for Miles Company for the current year.
2. Compute the amount of cash dividends actually paid in cash to stockholders during the year.