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-   -   Retained Earnings (https://www.askmehelpdesk.com/showthread.php?t=306117)

  • Jan 20, 2009, 03:57 AM
    L8L8L
    Retained Earnings
    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!
  • Jan 30, 2009, 11:00 AM
    lannbetts

    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?

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