Question
In: Finance
STATEMENT OF STOCKHOLDERS' EQUITY In its most recent financial statements, Newhouse Inc. reported $60 million of...
STATEMENT OF STOCKHOLDERS' EQUITY In its most recent financial statements, Newhouse Inc. reported $60 million of net income and $840 million of retained earnings. The previous retained earnings were $790 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid.
Solutions
Expert Solution
Given:
Net Income = $ 60 million
Opening retained earnings for recent year = $ 790 million (this is equal to closing of previous year)
Closing retained earnings for recent year = $ 840 million
Change in retained earnings = Closing – opening retained earnings
= $ 840 million - $ 790 million
= $ 50 million
Retained earnings has increased by $ 50 million.
Dividend payment during the year = Net Income – Increase in retained earnings
= $ 60 million - $ 50 million
= $ 10 million
Hence, dividends of $ 10 million paid to shareholders during the year.
Concept: Dividend is paid out of net income and rest is transferred to retained earnings. Here, out of net income of $ 60 million, $ 10 million is paid as dividend and $ 50 million goes to retained earnings.
jeff jeffy answered 1 year agoRelated Solutions
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.
7) In its most recent financial statements, Nessler Inc. reported $75 million of net income and...
7)
In its most recent financial statements, Nessler Inc. reported
$75 million of net income and $1,275 million of retained earnings.
The previous retained earnings were $1,211 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.
$
In its most recent financial statements, Nessler Inc. reported $80 million of net income and $1,120...
In its most recent financial statements, Nessler Inc. reported
$80 million of net income and $1,120 million of retained earnings.
The previous retained earnings were $1,098 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.
$
The most recent financial statements for Suncrest Inc. are shown here: Statement of Comprehensive Income Statement...
The most recent financial statements for Suncrest Inc. are shown
here:
Statement of Comprehensive Income
Statement of Financial Position
Sales
$
26,400
Assets
$
65,000
Debt
$
27,400
Costs
17,300
Equity
37,600
Taxable income
$
9,100
Total
$
65,000
Total
$
65,000
Taxes (40%)
3,640
Net income
$
5,460
Assets and costs are proportional to sales. Debt and equity are
not. A dividend of $2,300 was paid, and suncrest wishes to maintain
a constant payout ratio. Next year’s sales are...
Which of the following statements is most correct? a) Statement of stockholders’ equity shows by how...
Which of the following statements is most correct?
a) Statement of stockholders’ equity shows by how much a firm's
total assets has changed during the year and why this change
occurred.
b) Net operating profit after taxes is profit a company would
generate after factoring in interest payments on debt.
c) Free cash flow is the amount of operating income that can be
used to pay obligations as well as provide a return to
shareholders.
d) Depreciation, a non-cash charge,...
The most recent financial statements for ABC, Inc. are shown here: Income Statement Balance Sheet...
The most recent financial statements for ABC, Inc. are shown
here:
Income Statement
Balance Sheet
Sales
4,800
Current assets
6,084
Current Liabilities
1,244
Costs
3,840
Fixed assets
5,183
Long-term debt
2,487
Taxable income
960
Equity
7,036
Taxes (35%)
336
Retained earnings
500
Net income
624
Total
11,267
Total
11,267
The company is running at full capacity and the company
maintains a constant 50 percent dividend payout ratio. Like every
other firm in its industry, next year's sales are projected...
The most recent financial statements for Bello, Inc., are shown here: Income Statement Balance Sheet...
The most recent financial statements for Bello, Inc., are shown
here:
Income Statement
Balance Sheet
Sales
$
40,200
Assets
$
148,000
Debt
$
43,500
Costs
27,300
Equity
104,500
Taxable income
$
12,900
Total
$
148,000
Total
$
148,000
Taxes (23%)
2,967
Net income
$
9,933
Assets and costs are proportional to sales; debt and equity are
not. A dividend of $3,450 was paid, and the company wishes to
maintain a constant payout ratio. Next year’s sales are projected...
The most recent financial statements for Bello, Inc., are shown here: Income Statement Balance Sheet...
The most recent financial statements for Bello, Inc., are shown
here:
Income Statement
Balance Sheet
Sales
$
39,600
Assets
$
145,000
Debt
$
42,000
Costs
27,000
Equity
103,000
Taxable income
$
12,600
Total
$
145,000
Total
$
145,000
Taxes (25%)
3,150
Net income
$
9,450
Assets and costs are proportional to sales; debt and equity are
not. A dividend of $3,300 was paid, and the company wishes to
maintain a constant payout ratio. Next year’s sales are projected...
There are 4 Basic Financial Statements: Income Statement, Balance Sheet, Statement of Changes in Stockholders/Owner’s Equity,...
There are 4 Basic Financial Statements: Income Statement,
Balance Sheet, Statement of Changes in Stockholders/Owner’s Equity,
and Statement of Cash Flows. The Statement of Cash Flows typically
receives the least amount of attention in Accounting textbooks.
Further, the news typically focuses on ‘Net Income’ and ‘Quarterly
Earnings.’ Also, reference is also made to items on the Balance
Sheet. For example, technology companies can be a risky investment
because despite their high earnings, there may be very little in
the way...
The most recent financial statements for GPS, Inc., are shown here: Income Statement Sales $23,852 Costs...
The most recent financial statements for GPS, Inc., are shown
here:
Income Statement
Sales
$23,852
Costs
$11,902
Taxable Income
?
Taxes (40%)
?
Net Income
?
Balance Sheet
Assets
$56,455
Debt
$18,576
Equity
?
Assets and costs are proportional to sales. Debt and equity are
not. A dividend of $1,980 was paid, and the company wishes to
maintain a constant payout ratio. Next year’s sales are projected
to be $29,412.
What is the external financing needed? (Negative amount
should be...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Explain at least three reasons why there are so many divisions / denominations in the Christian...
- COSC 1436 Programming Assignment : Skill Practice Assignment 3 Your skill practice assignment this week will...
- Waste elimination and process improvement can be applied to virtually any process. Identify a process at...
- Do you think the FASB should continue to require the Statement of Cash Flows or are...
- Here is your chance to analyze an actual co-worker conflict situation and make suggestions on how...
- McKinsey Machines Ltd manufactures a single product A. It has two cost centers namely molding department...
- Threads: Assume a multithreaded application using user level threads mapped to a single kernel level thread...
ADVERTISEMENT