Question

Use the following information to answer this question.

   

Windswept, Inc. Current Income Statement ($ in millions)
Net sales	$ 10,900
Less: Cost of goods sold	8,150
Less: Depreciation	390
Earnings before interest and taxes	$ 2,360
Less: Interest paid	108
Taxable Income	$ 2,252
Less: Taxes	676
Net income	$ 1,576

  

Windswept, Inc. Balance Sheets ($ in millions)
	Last Year	This Year		Last Year	This Year
Cash	$ 410	$ 435	Accounts payable	$ 2,030	$ 1,965
Accounts rec.	1,190	1,090	Long-term debt	1,110	1,570
Inventory	1,960	1,810	Common stock	$ 3,440	$ 3,180
Total	$ 3,560	$ 3,335	Retained earnings	690	940
Net fixed assets	3,710	4,320
Total assets	$ 7,270	$ 7,655	Total liab. & equity	$ 7,270	$ 7,655

  

Use the change in accumulated retained earnings to held determine the dividends that the firm paid.

Answer 1

Please rate..

Dividend paid = Retained earning last year + Net income current year - Retained earning current year.
Retained earning Last year =	2,030
Add : Net income =	1,576
Less : Retained earning Current year =	-1,965
Dividend paid	1,641
Answer =	1,641