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Netflix paid out $12 million in dividend in 2021. Its retained earnings is $34 million. What is its net income?Group of answer choices$408 million$2.83 million$46 million$22 million

Question

Netflix paid out 12millionindividendin2021.Itsretainedearningsis12 million in dividend in 2021. Its retained earnings is 34 million. What is its net income?Group of answer choices408million408 million2.83 million46million46 million22 million

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Solution

The net income can be calculated using the formula:

Net Income = Dividends Paid + Retained Earnings

Given that Netflix paid out 12millionindividendsanditsretainedearningsis12 million in dividends and its retained earnings is 34 million, we can substitute these values into the formula:

Net Income = 12million+12 million + 34 million = $46 million

So, the net income of Netflix in 2021 was $46 million.

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