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

    Feb 4, 2012, 09:59 PM
    How to calculate dividends paid out from retained earnings?
    Retained Earnings = $8,700
    Common Stock $31,000
    Net Income $9,000
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
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    #2

    Feb 5, 2012, 12:27 AM
    Your problem appears to be incomplete. Is the retined earnings a beginning or ending balance?
    If it is a beginning balance, then no dividend seems to have been paid.
    If it is an ending balnce then dividends paid were $300 ($9000-8700)
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