During fiscal 2016, Stanley Black & Decker Corporation reported Net income of $965.3 million and paid dividends of $330.9 million.
Which of the following describes how these transactions would affect Stanley Black and Decker's equity accounts? (in millions)

Question

Quizplus · Accepted Answer

Net income increases earned capital, and paying dividends decreases it. The net effect is an increase in earned capital by the difference between the net income and dividends paid, which is $965.3 million - $330.9 million = $634.4 million.

During Fiscal 2016, Stanley Black & Decker Corporation Reported Net