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: Year Year 1 Year 2 Year 3 Required Cash Revenues Cash Expenses $14,000 $24,000 $34,000 $8,000 $11,000 $19,000 a. What would Sammy's Pizza report for net income and retained earnings for the Years 1, 2, and 3? c. Assume that Sammy's Pizza paid a $3,500 dividend to stockholders in Year 2. What would Sammy's Pizza report for net income and retained earnings for Year 2 and Year 3?
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Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365
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