The
year-end 2010 balance sheet of Brandex Inc. listed common stock and
other paid-in capital at $1,700,000 and retained earnings at $4,000,000.
The next year, retained earnings were listed at $4,300,000. The firm’s
net income in 2011 was $960,000. There were no stock repurchases during
the year. What were the dividends paid by the firm in 2011?
| Dividends paid | $ |
Explanation:
| Net income = increase in retained earnings + dividends |
| $960,000 = ($4,300,000 − $4,000,000) + dividends |
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