Answered

Find solutions to your problems with the help of IDNLearn.com's expert community. Find the information you need quickly and easily with our comprehensive and accurate Q&A platform.

On 12/31/2020, Heaton Industries Inc. reported retained earnings of $675,000 on its balance sheet, and it reported that it had $172,500 of net income during the year. On its previous balance sheet, at 12/31/2019, the company had reported $555,000 of retained earnings. No shares were repurchased during 2020. How much in dividends did Heaton pay during 2020?
a. $47,381
b. $49,875
c. $57,881
d. $55,125
e. $52,500

Sagot :

Samawatiidn

Answer:

e. $52,500

Explanation:

Beginning  balance of retained earnings= $555,000

Net earning for the period=$172,500

Closing retained earnings balance for the period: $675,000

Closing retained earning =Beginning balance + net earnings - dividend

$675000 = $555,000 +$172,500- Dividends

$675000 = $727,500 - Dividends

Dividends = $727,500 - $675,000

Dividends =$52,500

We are delighted to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. For clear and precise answers, choose IDNLearn.com. Thanks for stopping by, and come back soon for more valuable insights.