4. Stockholders' equity The statement of retained earnings or the statement of stockholders' equity reconciles the net income, dividends paid, and the change in retained earnings during a particular year. Which of the following best describes shareholders' equity? Equity is the sum of shareholders' capital provided by shareholders and retained earnings. Equity is the difference between the company's assets and retained earnings. NOW Inc. released its annual results and financial statements. Grace is reading the summary in the business pages of today's paper. In its annual report this year, NOW Inc. reported a net income of $148 million. Last year, the company reported a retained earnings balance of $476 million, whereas this year it increased to $560 million. How much was paid out in dividends this year? $325 million $4 million $ 232 million $64 million