Financial Accounting

Learn the toughest concepts covered in your Financial Accounting class with step-by-step video tutorials and practice problems.

Stockholders' Equity

Retained Earnings

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Retained Earnings and the BASE Formula

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Retained Earnings and the BASE Formula

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Problem

On January 1, 2018, XYZ Company had a balance of retained earnings of $420,000. During 2018, the company earned net income of $205,000 and also paid dividends. If the balance of retained earnings on December 31, 2018 was $340,000, how much was paid in dividends?