Question

Wi-Fi, Inc., reported a net income of $50,000 for the current year. The beginning and ending balances for Retained Earnings for the year are $100,000 and $130,000 respectively. How much did Wi-Fi pay as dividends for the year

Answer 1

The total value of dividends paid to the shareholders of Wi-Fi, Inc. for the year given the change in retained earnings and income is $20,000.

What is the dividend paid?

Dividend is the amount paid to shareholders of a public company out of the net income earned by a company in a particular period.

Dividend paid = net income - change in net income

Change in net income = $130,000 - $100,000 = $30,000

Dividend paid = $50,000 - $30,000 = $20,000