Use the following information to compute the amount of dividends paid in the current period. Beginning retained earnings $ 54,000 Ending retained earnings $ 105,000 Decrease in cash $ 10,300 Net income $ 97,000 Change in stockholders’ equity $ 10,000

Use the following information to compute the amount of dividends paid in the current period. Beginning retained earnings $ 54,000 Ending retained earnings $ 105,000 Decrease in cash $ 10,300 Net income $ 97,000 Change in stockholders’ equity $ 10,000

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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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Use the following information to compute the amount of dividends paid in the current period.


Beginning retained earnings	$	54,000
Ending retained earnings	$	105,000
Decrease in cash	$	10,300
Net income	$	97,000
Change in stockholders’ equity	$	10,000

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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