Rockwell plc had net income of £150,000 for the year ending 2009.The company decided to payout 40% of earnings per share as a dividend.Rockwell has 120,000 shares issued and outstanding.What are the retained earnings for the 2009?
A)£ 40,000
B)£ 60,000
C)£ 90,000
D)£150,000
E)None of the above.

Question

Quizplus · Accepted Answer

The company pays out 40% of £150,000 as dividends, which is £60,000. The retained earnings are the remaining 60%, which is £90,000.

Rockwell Plc Had Net Income of £150,000 for the Year