The net income can be retained as retained earnings and/ or paid out in dividends.
If the retained earnings increased $38 million and you paid out 20 in dividends, the net earnings must have been $58 million.
It is unlikely you would have had 286,000 ending retained earnings and 248 million to begin with so I assume the 286,000 is really 286 million.
yes
Hi all, I have a question for my accounting homework I am having trouble with.
If retained earnings at the beginning of the period was $248 million and $28 million was paid in dividends during the year, what was the net income for the year?
The stockholders’ equity section of Velcro World is presented here.
VELCRO WORLD
Balance Sheet (partial)
($ and shares in thousands)
Stockholders' equity:
Preferred stock, $1 par value $ 5,800
Common stock, $1 par value 28,000
Additional paid-in capital 1,028,600
Total paid-in capital 1,062,400
Retained earnings 286,000
Treasury stock, 12,000 common shares (360,000)
Total stockholders' equity $ 988,400
Based on the stockholders equity section of Velcro World, answer the following questions. Remember that all amounts are presented in thousands.
