Question

In its most recent financial statements, Westhouse Corp. reported $41 million of net income and $665 million of retained earnings. The previous retained earnings were $675 million. How much dividends were paid to shareholders during the year?

Answer 1

Answer:

$51 million

Explanation:

The movement or difference between the opening and closing retained earnings is the net in the dividends paid and the net income for the year.

Given

net income = $41 million

Opening retained earnings  = $675 million

closing retained earnings = $665 million

Dividend paid = p

$675 million + $41 million - p = $665 million

p = $675 million + $41 million - $665 million

p = $51 million

Dividend paid to shareholders is $51 million