Question

The following information pertains to Alpha Computing at the end of 2015:

Assets $972,500
Liabilities $450,000
Net Income $237,500
Common Stock $370,000


Alpha Computing's Retained Earnings account had a zero balance at the beginning of 2015.
What amount of dividends did the company pay in 2015?

Answer 1

Dividens paid in 2015: $85.000

Step-by-step explanation:

TOTAL ASSETS 972.500

TOTAL LIABILITIES 450.000

Common Stock $ 370.000

Retained Earnings $ 152.500

TOTAL EQUITY $ 522.500

Retained Earnings Report

Opening retained earnings $ 0

Add: Net Income $ 237.500

Subtotal $ 237.500

Less: Dividens -$ 85.000

Total $ 152.500