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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.

$  

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Expert Solution

Net income = $75,000,000

Closing retained earnings = $ 1,275,000,000

Previous retained earnings = $ 1,211,000,000

Dividend paid will be the addition of net income to the previous retained earnings less the closing balance of retained earnings.

= 1,211,000,000 + 75,000,000 - 1,275,000,000

= $11,000,000

Therefore dividend paid

= $11,000,000

jeff jeffy answered 2 years ago
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