Acompany earned net income of $ 80 comma 000 during the year ended december 31, 2016. on december 15, the company declared the regular dividend on its 2% preferred stock (13 comma 000 shares with total par value of $ 130 comma 000) and a $ 0.75 per share dividend on its common stock (65 comma 000 shares with total par value of $ 650 comma 000). the company paid the dividends on january 4, 2017. did retained earnings increase or decrease during 2016? by how much?

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.