Use the following information to find dividends paid to common stockholders duri
ID: 2813088 • Letter: U
Question
Use the following information to find dividends paid to common stockholders during 2018. (Enter your answers in millions of dollars.)
Millions of dollars
Millions of dollars
Balance of retained earnings, December 31, 2017
$462
Plus: Net income for 2018
15
Less: Cash dividends paid
Preferred stock
$1
Common stock
Total cash dividends paid
Balance of retained earnings, December 31, 2018
$470
Millions of dollars
Millions of dollars
Balance of retained earnings, December 31, 2017
$462
Plus: Net income for 2018
15
Less: Cash dividends paid
Preferred stock
$1
Common stock
Total cash dividends paid
Balance of retained earnings, December 31, 2018
$470
Explanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Balance of retained earnings, December 31, 2017 462.00 Plus: Net income for 2018 15.00 Less Preferred stock (1.00) Balance of retained earnings before common stock dividend = 462 + 15 - 1 476.00 Balance of retained earnings, December 31, 2018 470.00 Common stock dividend= 476 - 470 6.00 Thus Balance of retained earnings, December 31, 2017 462.00 Plus: Net income for 2018 15.00 Less cash dividend paid Less Preferred stock (1.00) Common stock dividend (6.00) Total cash dividends paid (7.00) Balance of retained earnings, December 31, 2018 470.00
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