Problem:

Thelma and Louie, Inc., started the year with a balance of retained earnings of $545 million and ended the year with retained earnings of $590 million. The company paid dividends of $35 million to the preferred stockholders and $75 million to common stockholders.

Required:

Question: Calculate Thelma and Louie's net income for the year.

Note: Be sure to show how you arrived at your answer.