Question
Sammy's Pizza opened on January 1, Year 1. Sammy's reported the following for cash revenues and cash expenses for the Years 1 to 3.
Sammy's Pizza opened on January 1, Year 1. Sammy's reported the following for cash revenues and cash expenses for the Years 1 to 3. Cash Revenues Year 1 $ 25,000 Year 2 $ 35,000 Year 3 $ 45,000 Required Cash Expenses $ 13,500 $ 16,500 $ 24,500 a. What would Sammy's Pizza report for net income and retained earnings for Years 1, 2, and 3? c. Assume that Sammy's Pizza paid a $6,250 dividend to stockholders in Year 2. What would Sammy's Pizza report for net income and retained earnings for Year 2 and Year 3? Complete this question by entering your answers in the tabs below.
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