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View Full Version : How to calculate dividends paid out from retained earnings?


kelseylea
Feb 4, 2012, 09:59 PM
Retained Earnings = $8,700
Common Stock $31,000
Net Income $9,000

rehmanvohra
Feb 5, 2012, 12:27 AM
Your problem appears to be incomplete. Is the retined earnings a beginning or ending balance?
If it is a beginning balance, then no dividend seems to have been paid.
If it is an ending balnce then dividends paid were $300 ($9000-8700)