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View Full Version : How to estimate dividends paid


r_heggen
May 23, 2010, 07:51 PM
Total Assets 56K
Total Liab 32K
Net Income 7500
Beginning Retained Earnings 9800
Ending Retained Earnings 10400
Calculate Dividends MOST LIKELY PAID this year:
A) 24000
B) 2900
C) 6900
D) 600

pready
May 23, 2010, 10:06 PM
First calculate how much income went into retained earnings. Ending balance - Beginning balance.

Next subtract that amount from Net Income and you have your answer.