Question

In its most recent financial statements, Nessler Inc. reported $40 million of net income and $600 million of retained earnings. The previous retained earnings were $582 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.

Answer 1

Answer:

The company paid 22,000,000 dollars of dividends to his shareholders

Explanation:

Retained Earnings identity:

$Beginning Retained Earnings +/- Net Income/Loss - Dividends Equals Ending Retained Earning$

we plug our know values and solve for dividends:

582 + 40 - dividends = 600 Retained Earnings

582 + 40 - 600 = Dividends

Dividends = 22 millions

22,000,000