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L8L8L
Jan 20, 2009, 03:57 AM
I'm trying to figure out the value of retained earnings.

I was given the following table:

common stock ($1 par value) = $8,000
capital surplus = 156,000
Retained earnings = 510,000
Total owner's equity = $674,000

The question then moves on to ask how all of the above equity accounts will change if the current stock's price is $24 per share and a 9% stock dividend is declared.

I already figured out the following:

Number of new shres issued = 720
common stock ($1 par value) = $8,720
capital surplus = 172,560

But I still need the RETAINED EARNINGS.

How do I compute it?
Thanks!

lannbetts
Jan 30, 2009, 11:00 AM
I own 25% of Company A. My investment in a company was $180,000. Company A earned $70,000 and paid dividends of $10,000. How much will I report in earnings? How much cash flow will I receive?