Balance Sheet3-Dudes, Inc.Liabilities & Owners' Equity:Assets:20212022$22,000 $18,000$26,000 $30,000$28,000 $31,000$76,000 $79,0002022$45,000$220,000 $195,000Notes Pay$27,000$292,000 $246,000Total CL2021Cash$21,000Accts PayAccts. Rec.$30,000Other CLInventoriesTotal CA$600,000 $570,000LT Debt-$210,000 -$190,000Total Liab$390,000 $380,000$285,000 $250,000$361,000 $329,000PP&EDepreciationNet PP&E$80,000 $80,000Equity$626,000Ret Earn.Total equityTotal Liab+EQ$241,000 $217,000$321,000 $297,000$682,000 $626,000Total Assets$682,000Simplified Income Statement - 20223-Dudes, Inc$1,200,000-$470,000$730,000RevenueCost of Goods SoldGross ProfitOperating Expenses (G&A):Earnings before interest and taxes (EBIT)Interest charges:Earnings before taxes (EBT)Taxes-$260,000$470,000-$28,000$442,000-$132,600$309,400Net Income 3. Calculate dividendsNet Income- Change in Retained Earnings(+ or - in RE changes dividends)Dividends

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Asked Dec 12, 2019
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Balance Sheet
3-Dudes, Inc.
Liabilities & Owners' Equity:
Assets:
2021
2022
$22,000 $18,000
$26,000 $30,000
$28,000 $31,000
$76,000 $79,000
2022
$45,000
$220,000 $195,000Notes Pay
$27,000
$292,000 $246,000Total CL
2021
Cash
$21,000Accts Pay
Accts. Rec.
$30,000Other CL
Inventories
Total CA
$600,000 $570,000LT Debt
-$210,000 -$190,000Total Liab
$390,000 $380,000
$285,000 $250,000
$361,000 $329,000
PP&E
Depreciation
Net PP&E
$80,000 $80,000
Equity
$626,000Ret Earn.
Total equity
Total Liab+EQ
$241,000 $217,000
$321,000 $297,000
$682,000 $626,000
Total Assets
$682,000
Simplified Income Statement - 2022
3-Dudes, Inc
$1,200,000
-$470,000
$730,000
Revenue
Cost of Goods Sold
Gross Profit
Operating Expenses (G&A):
Earnings before interest and taxes (EBIT)
Interest charges:
Earnings before taxes (EBT)
Taxes
-$260,000
$470,000
-$28,000
$442,000
-$132,600
$309,400
Net Income
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Balance Sheet 3-Dudes, Inc. Liabilities & Owners' Equity: Assets: 2021 2022 $22,000 $18,000 $26,000 $30,000 $28,000 $31,000 $76,000 $79,000 2022 $45,000 $220,000 $195,000Notes Pay $27,000 $292,000 $246,000Total CL 2021 Cash $21,000Accts Pay Accts. Rec. $30,000Other CL Inventories Total CA $600,000 $570,000LT Debt -$210,000 -$190,000Total Liab $390,000 $380,000 $285,000 $250,000 $361,000 $329,000 PP&E Depreciation Net PP&E $80,000 $80,000 Equity $626,000Ret Earn. Total equity Total Liab+EQ $241,000 $217,000 $321,000 $297,000 $682,000 $626,000 Total Assets $682,000 Simplified Income Statement - 2022 3-Dudes, Inc $1,200,000 -$470,000 $730,000 Revenue Cost of Goods Sold Gross Profit Operating Expenses (G&A): Earnings before interest and taxes (EBIT) Interest charges: Earnings before taxes (EBT) Taxes -$260,000 $470,000 -$28,000 $442,000 -$132,600 $309,400 Net Income

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3. Calculate dividends
Net Income
- Change in Retained Earnings
(+ or - in RE changes dividends)
Dividends
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3. Calculate dividends Net Income - Change in Retained Earnings (+ or - in RE changes dividends) Dividends

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Expert Answer

Step 1

Retained earnings of the company is that ratio of the net income which is used by the company to reinvest. Dividends are also paid out of net income and the difference in net income and retained earnings is the dividends paid.

Step 2

From the table below

 

Net Income is $309400

Retained earnings for Year 2021 = $217000

Retained earnings for Year 2022 = $241000

Step 3
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Change in retained earnings = Retained earnings in Year 2022 -Retained earnings in Year 2021 =$241000 – $217000 =$24000 Dividends = Net Income - Change in retained earnings =S309400 - $24000 = $285400

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