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    r_heggen's Avatar
    r_heggen Posts: 1, Reputation: 1
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    #1

    May 23, 2010, 07:51 PM
    How to estimate dividends paid
    Total Assets 56K
    Total Liab 32K
    Net Income 7500
    Beginning Retained Earnings 9800
    Ending Retained Earnings 10400
    Calculate Dividends MOST LIKELY PAID this year:
    A) 24000
    B) 2900
    C) 6900
    D) 600
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    May 23, 2010, 10:06 PM

    First calculate how much income went into retained earnings. Ending balance - Beginning balance.

    Next subtract that amount from Net Income and you have your answer.
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