Question

Over the first four years of a company's life, it earned the following net income (loss): $6,000; $4,000; $7,000, and ($3,000). If the company's ending retained earnings is $8,400 after year 4, what is the average amount of dividends paid per year

Answer 1

Based on the retained earnings for the four years, the average dividend payment per year was $700.

What was the average amount of dividends?

This can be found as:

= Dividend payment for four years / 4 years

Dividend payment for four years:

= Net income - retained earnings

= (6,000 + 4,000 + 7,000 - 3,000) - 8,400

= $5,600

Average dividends:

= 5,600 / 4

= $1,400

#SPJ1

Find out more on dividend payments at brainly.com/question/25845157.