Total Net Income vs Net Income
Will the question specifically ask for Total Net Income if that is what the graders are looking for? For F2017 Q9, I backed into the Total Net Income value and provided it after subtracting out dividends to policyholders (as that was provided), but the question was looking for the answer of Net Income which was calculated in the step prior. Curious to get your thoughts on knowing when to use which?
Comments
The formula of the solution is this:
Current Surplus = Prior Surplus + Net Income + Direct Charges to Surplus
The net income that you back into by supplying the other items is net income already netted of ph dividends. You don't have to subtract the 47.