Question

In its most recent financial statements, Del-Castillo Inc. reported $65 million of net income and $950 million of retained earnings. The previous retained earnings were $937 million. How much in dividends did the firm pay to shareholders during the year? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000.

Answer 1

Answer:

$52,000,000

Explanation:

The computation of the dividend paid to the shareholders during the year is shown below:

As we know that

Ending retained earnings balance = Opening retained earning balance + net profit of the year - dividend paid

$950 million = $937 million + $65 million - dividend paid

$950 million = $1,002 million - dividend paid

So, the dividend paid is

= $1,002 million - $950 million

= $52,000,000