The right side of the balance sheet shows the firms liabilities and stockholders

Question

The right side of the balance sheet shows the firms liabilities and stockholders' equity. Which of the following best describes shareholders' equity? Equity is the difference between the company's assets and retained earnings. Equity is the sum of shareholders' capital provided by shareholders and retained earnings. In its annual report this year, NOW Inc. reported a net income of $102 million, last year, the company reported a retained earnings balance of $56l million, whereas this year it increased to $660 million. How much was paid out in dividends this year? $201 million $20 million $3 million $6 million

Explanation / Answer

1)equity is sum of share holders capital provided by share holders and retained earnings 2)$(561+102-660) million =$ 3 million

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