# 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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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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