On 12/31/2020, 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 12/31/2019, the company had reported $555,000 of retained earnings.No shares were repurchased during 20205.How much in dividends did Heaton pay during 2020?

Question

Quizplus · Accepted Answer

Retained earnings at the end of 2020 = Retained earnings at the end of 2019 + Net income generated during 2020 - Dividends paid during 2020
$675,000 = $555,000 + $172,500 - Dividends paid during 2020
Dividends paid during 2020 = $52,500