The company's total equity increased by $32,000 during 2011. New stockholder investment during the year totaled $65,000. Total revenues during the year were $500,000 and total expenses were $460,000. Cash on decreased by $7,500 during the year. What amount of dividends did the company declare during 2011?

Equity is:
+ investments
+ revenue
- expenses
- dividends

You have the amount of the increase, and you have two increases and a decrease given. See what those increases and decreases net out to. Compare that with the net increase of stockholders equity and see what dividends have to come out to make that number. It's working backwards.

You can't find the beginning retained earnings off this information.