a calculation of net revenue
|Less sales return and allowances||(22,400)|
|Less sales discount||(17,800)|
|Add Dividend revenue||91,000|
|Add rent revenue||8,500|
Net revenue is $549,300.
b calculation of net income
|Total net revenue||549,300|
|Cost of goods sold||384,400|
|Income tax expense||100|
$200 is net profit.
C Dividend = (Beginning retained earnings + net profit) - ending retained earnings
Dividend = (114,400 + 200) - 74,000 = $40,600
Dividend declared during the year is $40,600.
Rent revenue and dividend revenue are other revenues except sales revenue taken for computing total net sales.
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