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View Full Version : How to find dividends from retained earnings?


dannycastilleja
Sep 9, 2010, 09:01 AM
I am doing an exercise from my homework and I have to determine the missing ammounts. One of them being Dividends. How do I find the dividends if there have been changes during the year in retained earnings?

Elder Corporation
Beginning of year
Total assets $101,479
Total liabilities 86,754
Total stockholders equity 14,725

End of year
Total assets 169,254
Total liabilities 113,783
Total stockholder's equity 55,471

Changes during year in retained earnings
Dividends _________
Total revenues 219,402
Toatl expenses 161,307

morgaine300
Sep 9, 2010, 10:21 PM
Only two things affect retained earnings: net income (or net loss) and dividends. You can get the change in equity. You can get net income. And dividends is the only other thing that could have contributed to that change.