Question

During the current year, the total assets of mifflinburg corporation decreased by $60,000 and total liabilities decreased by $300,000. the company issued $100,000 of new stock, and its net income for the year was $250,000. no other changes to stockholders' equity occurred during the year.determine the dollar amount of dividends declared by the company during the year.

Answer 1

the corporation decrease would lead to the

Answer 2

The dollar amount of the dividend declared via the company is $10,000.

The calculation of the dividend declared amount is as follows:

= Increase in equity + increase in retained earnings - decrease in liabilities -  Net increase in assets

= $100,000 + $250,000 - $300,000 -  ($100,00 - $60,000)

= $100,000 + $250,000 - $300,000 - $40,000

= $50,000 - $40,000

= $10,000

Therefore we can conclude that the dollar amount of the dividend declared via the company is $10,000.

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