Question

In its most recent financial statements, Del-Castillo Inc. reported $45 million of net income and $910 million of retained earnings. The previous retained earnings were $905 million. How much in dividends did the firm pay to shareholders during the year?

Answer 1

Answer:Dividend paid to share holders =$40 Million

Step-by-step explanation:

A dividend is referred to as profits earned or made by a corporation or firm which it shares to its shareholders. The amount of profit which is not shared to shareholders are called the retained earnings which are are then reinvested to the business

Ending retained earning = opening retained earning + net Income of the year - dividend paid

Therefore Dividend paid to share holders= opening retain earning + net income of the year -Ending retained earning.

=$905 million +$45 million- $910 million

=$40 Million