At the start of the year a company reported a balance of $300,000 in the Statement of Retained Earnings. If the company also reported net income of $90,000 in the same period and the ending balance in Retained Earnings of $320,000,  how much  dividends di the company pay to stockholders during the year. Group of answer choices $ 70,000 $110,000 $ 90,000 $ 20,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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At the start of the year a company reported a balance of $300,000 in the Statement of Retained Earnings. If the company also reported net income of $90,000 in the same period and the ending balance in Retained Earnings of $320,000,  how much  dividends di the company pay to stockholders during the year.

Group of answer choices
$ 70,000
$110,000
$ 90,000
$ 20,000
Expert Solution
Step 1

Formula:

Ending retained earnings balance = Beginning retained earnings balance + Net income - dividends paid.

 

Definition:

Dividend:

Distribution of company profits to the share holders on their investments is called Dividends.

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