How much dividends did this company pay in 2017? Income Statement ($000s) Balanc

Question

How much dividends did this company pay in 2017? Income Statement ($000s) Balance Sheet ($000s) 2017 2016 2017 2016 Revenues $ 200 $175 Cash $ 10 $150 Cost of Goods Sold 110 100 Accounts Receivable 10 40 Operating Expenses 30 28 Inventory 20 35 Interest Expense 20 12 Plant, Property, Equipment 180 180 Net Income 40 35 Total Assets $ 220 $405 Accounts Payable $ 15 $ 25 Bank Debt Due in 6 Months 20 50 Long term Debt 80 245 Common Stock 60 55 Retained Earnings 45 30 Total Liabilities & Equity $ 220 $405 The company has 1,000,000 shares of common stock authorized, 500,000 shares issued, and 200,000 outstanding as of both 12/31/2017 and 12/31/2016.

$5,000

$40,000

$30,000

$15,000

$25,000

Explanation / Answer

Dividends paid in 2017 is $25,000

Formula

Dividend amount = (Net income + Retained earnings at beginning of the period) - Retained earnings at end of the period

= (40,000+30,000)-45,000

= $25,000

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