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Ray Of Light [21]
2 years ago
11

Purple Dog Pet Supply Inc. (PDPS) released its annual results and financial statements. Lucia is reading the summary in the busi

ness pages of today's paper. In its annual report this year PDPS reported a net income of $110,000. Last year, the company reported a retained earnings balance of $425,000, whereas this year it increased to $500,000. How much was paid out in dividends this year?
Mathematics
1 answer:
Rama09 [41]2 years ago
4 0

Answer:

$35,000

Step-by-step explanation:

The computation of the dividend amount is given below:

As we know that

Dividend Paid = Net income - Retained earnings for current year

where,

Retained earnings for current year = This year - last year

= $500,000 - $425,000

= $75,000

Now

Dividend Paid is  

= $110,000 - $75,000

= $35,000

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