A List of Year 3 Revenues and Expenses for Green

Short Answer

A list of Year 3 revenues and expenses for Green Thumb,Inc.is provided below.
$\begin{array}{lr}\text { Advertising and Promotion Expenses } & 262,500 \\\text { Income Tax Expense } & 56,500 \\\text { Interest Expense } & 43,900 \\\text { Other Expenses } & 122,400 \\\text { Other Selling \& Administrative Expenses } & 350,800 \\\text { Sales Revenue } & 1,865,300 \\\text { Salaries and Wages Expense } & 724,800\end{array}$ Required:
a.Calculate the net income for the Green Thumb,Inc.for Year 3.
b.Prepare a statement of retained earnings for Green Thumb,Inc.for Year 3.Assume the company had retained earnings of $162,000 as of January 1,Year 3,and paid out $46,000 in dividends during Year 3.