4. If a company has net income of $50,000 and paid $10,000 in dividends, the retained earnings would: a) Increase by $40,000b) Decrease by $10,000c) Increase by $50,000d) Decrease by $50,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 2P
icon
Related questions
Question

4. If a company has net income of $50,000 and paid $10,000 in dividends, the retained earnings would:

a) Increase by $40,000
b) Decrease by $10,000
c) Increase by $50,000
d) Decrease by $50,000 

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning