Question

In its most recent financial statements, Nessler Inc. reported $80 million of net income and $1,200 million of retained earnings. The previous retained earnings were $1,140 million. How much in dividends were paid to shareholders during the year?

Answer 1

Answer:

$140 million

Explanation:

Given that,

Ending Retained Earnings = $1,140 million

Beginning Retained Earnings = $1,200 million

Net Income = $80 million

Ending Retained Earnings = Beginning Retained Earnings + Net Income - Dividends

$1,140 million = $1,200 million + $80 million - Dividends

Dividends = $1,200 million + $80 million - $1,140 million

                 = $140 million

Therefore, the dividend of $140 million were paid to shareholders during the year.