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A company paid out 22.5 million in total common dividends and reported 278.9 million in retained earnings at year-end The prior year's retained earning were 212.3 million What was the net income?
Wiki User
∙ 16y ago
(278.9 - 212.3) + 22.5 = 89.1 million in Net Income
Wiki User
∙ 16y ago
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What causes retained earnings in a company to decrease?
Retained Earnings is decreased by a loss for the year or dividends paid to stockholders.
Can you debit asset and credit Retained earnings?
Assets are increased with a debit and decreased by a credit. Retained earnings is a credit, as they are an owners equity account and increase with credit.Retained earnings is what a company has after all expenses and dividends (if applicable) are paid. Retained earnings is shown on the Statement of Retained Earnings and is a credit which increases OE.
If a company earned 820 million last year and paid out 20 percent of earnings in dividends by how much did the companys retained earnings increase?
Company's retained earnings increased by 80% of last year profit that is (820 million * 80%) 656 million.
How can a company increase equity?
- By generating GAAP earnings and not paying them as dividends - the retained earnings will increase. - By selling and increasing outstanding number of shares - the paid in capital will increase.
What makes retained earnings go down?
Retained earnings can go down if there is a negative supply of net income, or if more dividends are paid then net income. For example, retained earnings can go down if a company uses leftover cash to pay shareholders for previous years cash holdings.
Can you pull your retained earnings and put into dividends?
Yes retained earnings are maintained for use when company is low in liquidity so company can use its retained earnings to pay dividends or any other business activity in normal course of business.
What causes retained earnings in a company to decrease?
Retained Earnings is decreased by a loss for the year or dividends paid to stockholders.
What are the reasons organization grows?
Mainly profits. If you're referring to a corporation and a company makes large profits and uses retained earnings (which aren't taxed like dividends) the company grows. Retained earnings are profits that are kept in the company and spent on expanding instead of giving the profits out in dividends. Many tech companies that have grown astronomically have done so through retained earnings.
Can you debit asset and credit Retained earnings?
Assets are increased with a debit and decreased by a credit. Retained earnings is a credit, as they are an owners equity account and increase with credit.Retained earnings is what a company has after all expenses and dividends (if applicable) are paid. Retained earnings is shown on the Statement of Retained Earnings and is a credit which increases OE.
How can a company earn a large net income and have a small balance in retained earnings?
If the company started out with negative Retained Earnings, the ending balance would be less than their Net Income. Or, if the company paid out a large amount in Dividends.
If a company earned 820 million last year and paid out 20 percent of earnings in dividends by how much did the companys retained earnings increase?
Company's retained earnings increased by 80% of last year profit that is (820 million * 80%) 656 million.
ABC company earned 900 million last year and paid out 30 percent of earnings in dividends how much did the company's retained earnings increase?
630M 900,000,000 / 30%
How can a company increase equity?
- By generating GAAP earnings and not paying them as dividends - the retained earnings will increase. - By selling and increasing outstanding number of shares - the paid in capital will increase.
What makes retained earnings go down?
Retained earnings can go down if there is a negative supply of net income, or if more dividends are paid then net income. For example, retained earnings can go down if a company uses leftover cash to pay shareholders for previous years cash holdings.
What is the statement of retains earning and what information does it provide?
The statement of retained earnings is a business statement that illustrates the total retained earnings by a company at the end of a period. Basically the statement starts with retained earnings from the previous period, then adds any gains (on investments) and subtracts any losses (dividends declared, goodwill, discontinued operations). You are then left with the retained earnings for the current period.
Does payment of dividends reduce stockholders equity?
Answer:Yes. Equity consists of paid-in capital (received from the shareholders when they bought their shares) and retained earnings. Retained earnings are all past earnings that the company made and did not pay out as a dividend (hence: "retained"). Retained earnings therefore increases with earnings, but decreases with dividends, since dividend is a distribution of earnings to the shareholders.
What are the differences between dividend and expense accounts?
Dividend account is the account used to record money paid on stock such as common stock, this comes out of retained earnings. Expense accounts are expenses that the company has to maintain operation and come out of Revenue, before dividends are calculated. A company may choose to not pay dividends on stock for a year (or so) if the company's retained earnings do not meat a certain amount.
