Canadian Tire Corporation, Limited reported net income of $735.9 million for the

Question

Canadian Tire Corporation, Limited reported net income of $735.9 million for the year ended January 2, 2016. Its retained earnings were $4,075.1 million at the beginning of the year and $4,172.0 million at the end of the year. It had no dividends payable at the beginning or end of the year. Assuming no other changes to retained earnings, what amount of dividends did Canadian Tire pay during the year? (Round answer to 1 decimal place, e.g. 15.2.)

Would your answer change if you knew that the Dividends Payable account increased during the year?

Explanation / Answer

Beginning retained earnings 4,075.10 Add net income 735.9 4,811.00 less closing retained earnings 4,172.00 Dividends paid 639.00 Dividends paid $639 the answer would change if the dividends payable account increased during the year

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