BSpyder
Feb 15, 2011, 03:01 PM
Using the information below, calculate the amount of dividends Dean most likely paid to common stockholders in 2008, 2009, and 2010.
Retained Earnings balances
Jan 01, 2008 $700
Dec 31, 2008 $890
Dec 31, 2009 $1,045
Dec 31, 2010 $1,010
Year Net Incomes.
2008 $250
2009 $225
2010 $40.
I am thinking I have to solve by using (BER +/- Net Income - Dividends = ERA). But I can't seem to figure it quite out. I am only asking on how to calculate it on paper or a calculator. So would step 1 be $700 +/- 250 - Dividends = 890 >> 890-450 >> $440 for Dividends for the year 2008?
Retained Earnings balances
Jan 01, 2008 $700
Dec 31, 2008 $890
Dec 31, 2009 $1,045
Dec 31, 2010 $1,010
Year Net Incomes.
2008 $250
2009 $225
2010 $40.
I am thinking I have to solve by using (BER +/- Net Income - Dividends = ERA). But I can't seem to figure it quite out. I am only asking on how to calculate it on paper or a calculator. So would step 1 be $700 +/- 250 - Dividends = 890 >> 890-450 >> $440 for Dividends for the year 2008?