Question

Use the following information to answer this question.

Windswept, Inc. 2010 Income Statement ($ in millions)

Net sales $10,700
Less: Cost of goods sold 8,050
Less: Depreciation 380
Earnings before interest and taxes $2,270
Less: Interest paid 104
Taxable Income $2,166
Less: Taxes 650
Net income $1,516

Required:
What amount should be included in the financing section of the 2010 statement of cash flows for dividends paid?

Answer 1

See below

Step-by-step explanation:

The above is an incomplete question, however, from a similar question values of beginning retained earnings, ending retained earnings were given to compute the dividend paid.

Given that;

Beginning retained earnings = $700 million

Ending retained earnings = $450 million

Net income = $1,516 million

Closing retained earning = Beginning retained earning + Net income - Dividends paid

$450 = $700 + $1,516 - Dividends paid

$450 = $2,216 - Dividends paid

Dividends paid = $1,766