Al Shea is the sole owner and operator of SawTooth Company. As of the end of its accounting period, December 31, 20013, SawTooth Company has assets of $925,000 and liabilities of $285,000. During 20014, Al Shea invested an additional $50,000 and paid dividends of $30,000 from the business. What is the amount of net income during 2008, assuming that as of December 31, 20014, assets were $980,000, and liabilities were $255,000? a. $ 95,000 b. $ 65,000 c. $165,000 d. $725,000

I am confused here, because dividends should be subtracted from the retained earnings statement and investments should be on a cash flow statement. Please explain how to solve this.