Final answer:
The Thomas Corporation distributed $103,000 in dividends during the year, calculated by subtracting the increase in stockholders' equity due to the net income from the net income itself.
Step-by-step explanation:
The Thomas Corporation's dividends distributed during the year can be calculated by analyzing the changes in stockholders' equity. We ascertain the dividends by first identifying the net income and the variation in equity, excluding any fresh capital from the issuance of stock, which the company did not engage in this year.
The beginning balance of stockholders' equity was $33,000, the ending balance was $72,000, and the net income for the year was $71,000. We determine the dividends paid by looking at how much equity increased due to retained earnings and subtracting that increase from the net income. The equity increase is calculated as the difference between the ending and beginning stockholders' equity, minus the net income:
Calculation of Dividends Distributed:
- Ending balance of stockholders' equity: $72,000
- Beginning balance of stockholders' equity: $33,000
- Net Income: $71,000
- Equity Increase Due to Net Income (Ending Balance - Beginning Balance - Net Income): $72,000 - $33,000 - $71,000 = $-32,000
- Dividends Distributed (Net Income - Equity Increase): $71,000 - $-32,000 = $103,000
The calculations reveal that the dividends distributed amount to $103,000, which is represented by the total payout the shareholders received during that fiscal year.