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    sammy0150's Avatar
    sammy0150 Posts: 1, Reputation: 1
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    #1

    Jun 8, 2008, 07:40 AM
    Calculating Dividends
    This concerns calculating dividends that were paid by a certain firm. There are various items that are provided. The common stock and other paid capital are given as well as the retained earnings for the year 2005. The problem goes on to state the retained earnings as well as the net income for the year 2006. There were no stock purchases during that year and it asks us to determine the amount of dividends that were paid for the year 2006. Is there a certain way to do this?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Jun 8, 2008, 05:23 PM
    If by saying they're giving retained earnings for 2005, you mean an ending balance, keep in mind that is also a beginning balance for 2006.

    Beginning + Net Income - Dividends = Ending Balance.

    If that is not the case, then I don't see where the info is given to figure it out, at least not from what you're stating.
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