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    jmk15's Avatar
    jmk15 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Sep 5, 2007, 07:53 AM
    increase retained earnings=FIRM pay div of?
    Fairfax info:
    sales 750,000
    costs 500,000
    income tax rate 40%
    Retained earnings 200,000
    machine 100,000
    machine dep 20,000
    increase selling value machine to 120,000
    interest on debt 25,000
    net working capital 15,000
    fixed selling, general, administrative costs 5,000

    I have already made an income statement but now I have to figure out if retained earnings are increased by 50,000 how much did Fairfax pay in dividends.HELP
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Sep 6, 2007, 05:28 AM
    If you have already done an Income Statement, what is the Net Income? It should be more than 50,000. Subtract 50,000 from the Net Income and you have your dividends amount.
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