12/31/10, Heaton Industries Inc.reported retained earnings of $675,000 on its balance sheet, and it reported that it had $172,500 of net income during the year.On its previous balance sheet, at 12/31/09, the company had reported $555,000 of retained earnings.No shares were repurchased during 2010.How much in dividends did Heaton pay during 2010?
A)$47,381
B)$49,875
C)$52,500
D)$55,125
E)$57,881

Question

Quizplus · Accepted Answer

Retained earnings at the end of the year = Retained earnings at the beginning of the year + Net income - Dividends
$675,000 = $555,000 + $172,500 - Dividends
Dividends = $52,500