Answer:
$111,000
Explanation:
net income for Skysong during 2022:
total revenues $748,000
- total expenses ($637,000)
net income $111,000
Net income is not affected by new common stocks being issued, since no interests is paid.
It affects dividends because without net income dividends cannot be distributed, but dividends do not affect net income,
Retained earnings are increased by net income after taxes (= $111,000 x 79% = $87,690) - distributed dividends $36,000 = $51,690
