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Fundamentals of Financial Manageme...

8th Edition
Eugene F. Brigham + 1 other
Publisher: Cengage Learning
ISBN: 9781285065137

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BuyFindarrow_forward

Fundamentals of Financial Manageme...

8th Edition
Eugene F. Brigham + 1 other
Publisher: Cengage Learning
ISBN: 9781285065137
Chapter 3, Problem 4P
Textbook Problem
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STATEMENT OF STOCKHOLDERS' EQUITY In its most recent financial statements, New-house Inc. reported $50 million of net income and $810 million of retained earnings. The previous retained earnings were $780 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid.

Summary Introduction

To determine: The dividends paid by Company N.

Statement of Stockholders’ Equity: Statement of stockholders’ equity reports the opening and closing balance of stockholder’s equity with the changes incurred during the accounting period.

Explanation of Solution

Solution:

Statement of retained earnings for Company N:

N Company
Statement of Retained Earnings
Particulars

Amount

($)

Beginning balance of retained earnings $780,000,000
Add: Net Income $50,000,000
Retained earnings available $830,000,000
Less: Dividends (balancing figure) ($20,000,000)
Ending balance of retained ea...

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Chapter 3 Solutions

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
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