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On 12/31/18, Hite Industries reported retained earnings of $475,000 on its balance sheet, and it reported that it had $135,000 of net income during the year. On its previous balance sheet, at 12/31/17, the company had reported $445,000 of retained earnings. No shares were repurchased during 2018. How much in dividends did the firm pay during 2018?a) $82,950 b) $111,300 c) $105,000 d) $127,050 e) $124,950

Respuesta :

Answer:

Dividends = $105000

So option (c) will be correct answer

Step-by-step explanation:

We have given that Retained earning on 12/31/18 is $475000

And retained earning on 12/31/18 is $445000

Net income = $135000

Change in retained income = $475000-$445000 = $30000

We have to find dividends

We know that dividends is given by

Dividends = net income - change in retained income = $135000-$30000 = $105000

So option (c) will be correct answer

The dividend that the firm paid during 2018 is $105,000. Then the correct option is C.

What is subtraction?

It simply means to deduct something from the object or number of group, place, etc. Subtraction means to take away from the group or a number of objects.

Given

Hite Industries reported retained earnings of $475,000 on its balance sheet, and it reported that it had $135,000 of net income during the year.

On its previous balance sheet, on 12/31/17, the company had reported $445,000 of retained earnings. No shares were repurchased during 2018.

Change in retained income = $475000 - $445000 = $30000

We have to find the dividends that are given by

Dividends = net income - change in retained income

[tex]\rm Dividends = 135000- 30000\\\\Dividends = \$ 105000[/tex]

Thus, the correct option is C.

More about the subtraction link is given below.

https://brainly.com/question/4319655

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