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To find the last year's net income, we can use the following formula:
Net Income = Retained Earnings + Dividends - Increase in Assets
In this case, we are given that the retained earnings increased by $375,000, a cash dividend of $79,000 was declared, and the assets increased by $973,000.
Plugging these values into the formula, we have:
Net Income = $375,000 + $79,000 - $973,000
Simplifying the equation, we get:
Net Income = -$519,000
Therefore, last year's net income was -$519,000. This means that the company incurred a net loss of $519,000 for the year.