Question

Required information Problem 10-4B Analyze the stockholders' equity section (LO10-7) [The following information applies to the questions displayed below.] The stockholders' equity section of The Seventies Shop is presented here. THE SEVENTIES SHOP Balance Sheet (partial) ($ in thousands) Stockholders' equity: Preferred stock, $50 par value Common stock, $5 par value Additional paid-in capital Total paid-in capital Retained earnings Treasury stock Total stockholders' equity 12,500 25,000 37,500 45,500 (2,200) $80,800 Based on the stockholders' equity section of The Seventies Shop, answer the following questions. Remember that all amounts are presented in thousands. Problem 10-4B Part 4 4. If retained earnings at the beginning of the period was $38 million and net income during the year was $11,085,000, how much was paid in dividends for the year? (Enter your answer in dollars not in millions. (i.e., 5 should be entered as 5,000,000).) Dividends paid

Problem 10-4B Analyze the stockholders' equity section (LO10-7)

I've done every part up to here and now I'm lost. Please help. Thank you!

Answer 1

Ending retained earnings = Beginning retained earnings + Net income - Dividends paid

45,500,000 = 38,000,000 + 11,085,000 - Dividends paid

45,500,000 = 49,085,000 - Dividends paid

Dividends paid = 3,585,000