On 12/31/15,Hite Industries reported retained earnings of $497,500 on its balance sheet,and it reported that it had $135,000 of net income during the year.On its previous balance sheet,at 12/31/14,the company had reported $445,000 of retained earnings.No shares were repurchased during 2015.How much in dividends did the firm pay during 2015?

Question

Quizplus · Accepted Answer

The dividends paid can be calculated by taking the retained earnings at the end of 2014, adding the net income for 2015, and subtracting the retained earnings at the end of 2015. So, $445,000 + $135,000 - $497,500 = $82,500.

On 12/31/15,Hite Industries Reported Retained Earnings of $497,500 on Its