If retained earnings at the beginning of the period was $42 million and net income during the year was $12,543,000, how much was paid in dividends for the year?If the treasury stock was purchased at $20 per share, how many shares were purchased?How much was the dividend per share? The stockholders' equity section of The Seventies Shop is presented here.THE SEVENTIES SHOPBalance Sheet (partial)($ in thousands)Stockholders' equity:Preferred stock, $50 par valueCommon stock, $5 par valueAdditional paid-in capitalTotal paid-in capitalRetained earningsTreasury stockTotal stockholders' equity$017,00064,60081,60050,000(3,100)$128,500Based on the stockholders' equity section of The Seventies Shop, answer the following questions. Remember that allamounts are presented in thousands.

The dividend is declared to the shareholders from the retained earnings of the business. The…

If retained earnings at the beginning of the period was $42 million and net income during the year was $12,543,000, how much was paid in dividends for the year? If the treasury stock was purchased at $20 per share, how many shares were purchased? How much was the dividend per share?

If retained earnings at the beginning of the period was $42 million and net income during the year was $12,543,000, how much was paid in dividends for the year? If the treasury stock was purchased at $20 per share, how many shares were purchased? How much was the dividend per share?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

If retained earnings at the beginning of the period was $42 million and net income during the year was $12,543,000, how much was paid in dividends for the year?

If the treasury stock was purchased at $20 per share, how many shares were purchased?

How much was the dividend per share?

The stockholders' equity section of The Seventies Shop is presented here.
THE SEVENTIES SHOP
Balance Sheet (partial)
($ in thousands)
Stockholders' equity:
Preferred stock, $50 par value
Common stock, $5 par value
Additional paid-in capital
Total paid-in capital
Retained earnings
Treasury stock
Total stockholders' equity
$0
17,000
64,600
81,600
50,000
(3,100)
$128,500
Based on the stockholders' equity section of The Seventies Shop, answer the following questions. Remember that all
amounts are presented in thousands.

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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