Solving for Stockholders' Equity Amounts
Assume that the following amounts are known for Miles Company for the current year:
|
Retained Earnings, beginning balance
|
$420,000
|
|
Retained Earnings, ending balance
|
500,000
|
|
Cash dividends declared
|
100,000
|
|
Fair value of large stock dividend declared
|
50,000
|
|
Dividend Payable, beginning balance
|
90,000
|
|
Dividend Payable, ending balance
|
80,000
|
Required:
1. Assume that the only other amount that affected Retained Earnings during the year was the net income. Compute the net income for Miles Company for the current year.
2. Compute the amount of cash dividends actually paid in cash to stockholders during the year.