During the first year of operations, Sunset Surfwear issued 18,500 shares of $10 par common stock. At the end of the year, the corporation had net income of $380,000. The board of directors declared a $5 cash dividend per share of common stock. 

Instructions 

Answer the following questions in your working papers:

1. How much of the net income earned for the year was paid to the common stockholders?

2. How much of the net income was retained by the corporation?