Use the following financial statements for your company to calculate the amount
ID: 2655802 • Letter: U
Question
Use the following financial statements for your company to calculate the amount dividends paid for 2016?
Income Statement
Balance Sheet
Year Ended 12/31/2016
12/31/2016
12/31/2015
Sales
$1,300,000
Current Assets
$50,000
$45,000
Cost of Goods Sold
750,000
Gross Fixed Assets
880,000
650,000
Operating Expenses
200,000
Less Accumulated Depreciation
450,000
350,000
Depreciation Expense
100,000
Fixed Assets
430,000
350,000
EBIT
250,000
Total Assets
$480,000
$395,000
Interest Expense
50,000
EBT
200,000
Current Liabilities
$35,000
$50,000
Taxes
80,000
Long-term Debt
330,000
270,000
Net Income
$120,000
Common Stock
5,000
5,000
Retained Earnings
110,000
70,000
Total Liabilities & Equity
$480,000
$395,000
$65,000
$75,000
$70,000
$85,000
$80,000
Balance Sheet
Year Ended 12/31/2016
12/31/2016
12/31/2015
Sales
$1,300,000
Current Assets
$50,000
$45,000
Cost of Goods Sold
750,000
Gross Fixed Assets
880,000
650,000
Operating Expenses
200,000
Less Accumulated Depreciation
450,000
350,000
Depreciation Expense
100,000
Fixed Assets
430,000
350,000
EBIT
250,000
Total Assets
$480,000
$395,000
Interest Expense
50,000
EBT
200,000
Current Liabilities
$35,000
$50,000
Taxes
80,000
Long-term Debt
330,000
270,000
Net Income
$120,000
Common Stock
5,000
5,000
Retained Earnings
110,000
70,000
Total Liabilities & Equity
$480,000
$395,000
Explanation / Answer
Retained Earnings in 2015 = 70,000
Retained Earnings in 2016 = 110,000
Dividend Paid out for 2016 = Retained Earning in 2015 + Net income of 2016 - Ratained Earnings of 2015 =
70,000 + 1,20,000 - 1,10,000 = 80,000
Best of Luck. God Bless
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