Perlman Company Had 100,000 Common Shares and 20,000 Preferred Shares

Multiple Choice

Perlman Company had 100,000 common shares and 20,000 preferred shares at the end of the year just completed.Preferred shareholders received total dividends of $140,000.Common shareholders received total dividends of $210,000.If the dividend payout ratio for the year was 70%,what was the net income for the year?

A) $147,000.
B) $287,000.
C) $300,000.
D) $440,000.NI = 3 * 100,000 + 140,000 = $440,000.