On 12/31/2015,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 12/31/2014,the company had reported $555,000 of retained earnings.No shares were repurchased during 2015.How much in dividends did Heaton pay during 2015?

Question

Quizplus · Accepted Answer

Retained earnings at the end of 2015 = Retained earnings at the end of 2014 + Net income - Dividends
$675,000 = $555,000 + $172,500 - Dividends
Dividends = $52,500