Ask Experts Questions for FREE Help !
Ask
    Saphire101's Avatar
    Saphire101 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Mar 8, 2009, 12:58 PM
    Retained Earnings
    I think I may have confused myself with this homework question. OKay if a companys earned 82 million last year and paid out 20 % of earnings in dividends I take 820 million x 20 % = 164 million that is the 20 % that was paid out. But it also asks how much did the company's retained earnings increase? I am not sure I understand this part?
    asastring's Avatar
    asastring Posts: 13, Reputation: 3
    New Member
    		  
    #2

    Mar 8, 2009, 04:36 PM

    earnings $82 million
    20% of $82 is $16.4 mil.
    unless there is more information retained earnings should be the difference 82 - 16.4 = 65.6
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Retained Earnings = Earnings less dividends [ 5 Answers ]

Could someone confirm that's the correct definition of R.E. I thought R.E. is net not pay out dividend but my professor has in his note as "Retained Earnings = Earnings less dividends"

Calculating net earnings and preparing statement of retained earnings [ 2 Answers ]

I just started my introduction to accounting class in university and I am a little stuck on this question because we didn't really go over this is class... please help! Here is the information given: Sea Surf Campground is a public camping ground in Ocean National Park. It has the following...

Earnings per share and retained earnings [ 2 Answers ]

I am confused on how to calculate the earnings per share and the common dividend per share as well as figure out what the increased retained earnings for the year. The problem states that the company had an operating profit of $210,000. Interest expense for the year was $30,000; preferred...

Retained Earnings [ 1 Answers ]

During 2006, Edgemont Corporation had revenues of $230,000 and expenses, including income taxes, of $190,000. On December 31, 2005, Edgemont had assets of $350,000, liabilities of $80,000, and capital stock of $210,000. Edgemont paid a cash dividend of $25,000 in 2006. No additional stock was...

View more questions Search