In its most recent financial statements, Nessler Inc. reported $55 million of net income and $770 million of retained earnings. The previous retained earnings were $716 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.

Question

Business

Jaylen Shaw

9 September, 22:45

In its most recent financial statements, Nessler Inc. reported $55 million of net income and $770 million of retained earnings. The previous retained earnings were $716 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.

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Answers (1)

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Jaylynn Norton · Answer 1

The $1,000,000 is the dividend amount which were paid to shareholders during the year

Explanation:

The computation of the dividend paid is shown below

As we know that,

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

So

$770,000,000 = $716,000,000 + $55,000,0000 - dividend paid

$770,000,000 = $771,000,000 - dividend paid

So, dividend paid = $1,000,000