Determining Retained Earnings and Net Income

The following information appears in the records of Becker Corporation at year-end:

Accounts receivable $32,000

Retained Earnings $ ?

Accounts payable $12,000

Supplies $8,000

Cash $7,000

Equipment, net $145,000

Common stock $115,000

a.Calculate the balance in Retained Earnings at year end.

b.If the amount of retained earnings at the beginning of the year was $38,000 and $13,000 in dividends is paid during the year, calculate net income for the year.