#7.

Net income

Dokic, Inc. reported the following balance sheets for year-end 2001 and 2002 (dollars in millions):

2002 2001

Cash $650 $500

Accounts receivable 450 700

Inventories 850 600

Total current assets $1,950 $1,800

Net fixed assets 2,450 2,200

Total assets $4,400 $4,000

Accounts payable $680 $300

Notes payable 200 600

Wages payable 220 200

Tot current liabilities $1,100 $1,100

Long-term bonds 1,000 1,000

Common stock 1,500 1,200

Retained earnings 800 700

Total common equity $2,300 $1,900

Totliab.and equity $4,400 $4,000

The total dividends paid to the companys common stockholders during 2002 was $50 million. What was the companys net income during the year 2002?

a. $ 50 million

b. $150 million

c. $250 million

d. $350 million

e. $450 million