1 2 In 2011, Kinder Industries had Net Income of $40,000. 3 4 During each of the following years, Net Income increased by 10% over the prior year. 5 6 The company has no preferred shares outstanding. 7 8 Kinder has a dividend payout ratio of 40% in each year. 9 10 At the start of 2011 (end of 2010) the company had retained earnings of $100,000 11 on its balance sheet. 12 13 Tasks: 14 15 1. What were the total dividends paid in 2011 and 2012 16 2. What were the retained earnings for each year? 17 3. What were the retained earnings on the balance sheet at the end of each year? 18 19

In 2011, Kinder Industries had Net Income of $40,000. During each of the following years, Net Income increased by 10% over the prior year. The company has no preferred shares outstanding. Kinder has a dividend payout ratio of 40% in each year. At the start of 2011 (end of 2010) the company had retained earnings of $100,000 on its balance sheet. Tasks: 1. What were the total dividends paid in 2011 and 2012 2. What were the retained earnings for each year? 3. What were the retained earnings on the balance sheet at the end 0 ,each year