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In its most recent financial statements, Nessler Inc. reported $60 million of net income and $840...

In its most recent financial statements, Nessler Inc. reported $60 million of net income and $840 million of retained earnings. The previous retained earnings were $798 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.

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Expert Solution

As we know that ,

Net income = Dividend paid + Retained earnings for the year

Now ,Retained earnings for this year =Reported retained earnings this year less Previous retained earnings

=840-798=$ 42 million

Now ,Dividend paid = Net income less Retained earnings for this year =60-42 = $ 18 million

Hence ,Dividend paid during the year =$ 18,000,000

jeff jeffy answered 2 years ago
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