Question

During fiscal year-end 2016, Kohl’s Corporation reports the following (in $ millions): net income of $556, retained earnings at the end of the year of $12,522 and retained earnings at the beginning of the year of $12,329. Assume that there were no other retained earnings transactions during fiscal 2016. What dividends did the firm pay in fiscal year ended January 28, 2017

Answer 1

The dividends firm pay in fiscal year ended January 28, 2017 is $363.

Explanation:

Given:

Net income =
`\$556`.

At the end of the year the retained earnings =
`\$12,522.`

At the beginning of the year retained earnings =
`\$12,329.`

Now, to find the dividends firm pay in fiscal year ended January 28, 2017.

So, we first add the net income and the retained earnings at the beginning of the year and then subtract retained earnings at the end of year:

`(556+12,329)-12,522`

`=12,885-12,522`

`=\$363.`

Thus, the dividend = $363.

Therefore, the dividends firm pay in fiscal year ended January 28, 2017 is $363.