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GarryVolchara [31]
3 years ago
6

The net income of edwards corporation amounted to $74,000 for this year. the beginning balance ofâ stockholders' equity was $31,

000 and the ending balance was $72,000. the company issued no common stock during the year. what was the amount of dividends distributed during theâ year?
Business
1 answer:
kari74 [83]3 years ago
3 0
We can calculate the dividends issued by adding the beginning inventory and the net income less the ending inventory.Thus,
dividends= net income+beginning inventory-ending inventory
where
net income=$74,000
beginning inventory=$31,000
ending inventory =$72,000
substituting the values, we wil get
dividends=$33,000
Edwards corporation will issue dividends amounting to $33,000.
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