(a) Based on the statement of cash flow, what is the amount of dividends that DuPont distributed to shareholders during fiscal year 2019? (3 points)

(b) Assuming that the dividends in (a) are the only dividends paid during fiscal year 2019, please answer three questions.

1. How does the distribution of dividends affect DuPonts cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities for fiscal 2019? Please indicate increase, decrease, or no effect. (6 points)
2. How does the distribution of dividends affect DuPonts shareholders equity for fiscal year 2019? (3 points)
3. Please compute DuPonts retained earnings for fiscal 2019 solely based on the following information: (i) the retained earnings for fiscal 2018 (reported in the Balance Sheet), (ii) its net income available for DuPont common stockholders (reported in the Income Statement), and (iii) the distribution of dividends (your answer to 3(a)). Please ignore all other transactions that may have affected retained earnings. (6 points)
4. Is the actual retained earnings number for fiscal 2019 reported on the Balance Sheet larger or smaller than the number you computed in (3)? (Note that negative numbers are expressed in parentheses.) Based on the statement of shareholders equity, what is the main reason for this discrepancy? (4 points)

DuPont de Nemours, Inc. Consolidated Statements of Operations 2017 $ 2018 22,594 $ 15,302 1,070 3,028 1,044 147 11,672 9,558 657 2019 21,512 $ 14,056 955 2,663 1,050 314 1,175 1,342 84 153 1,615 50S (In millions, except for per share amounts) For the years ended December 31, Net sales Cost of sales Research and development expenses Selling, general and administrative expenses Amortization of intangibles Restructuring and asset related charges - net Goodwill impairment charges Integration and separation costs Equity in earnings of nonconsolidated affiliates Sundry income (expense) - net Interest expense (Loss) Income from continuing operations before income taxes Provision for (Benefit from) income taxes on continuing operations (Loss) Income from continuing operations, net of tax Income from discontinued operations, net of tax Net income Net income attributable to noncontrolling interests Net income available for DuPont common stockholders 288 1,887 447 92 1,007 367 66 668 55 600 195 (474) 140 (614) 1,214 600 405 3,595 4,000 155 (1,525) (1,758) 233 1,058 1,291 132 102 $ 498 $ 3,845 $ 1,159 Per common share data: (Loss) Eamings per common share from continuing operations - basic Eamings per common share from discontinued operations - basic Earnings per common share - basic (Loss) Earnings per common share from continuing operations - diluted Earings per common share from discontinued operations - diluted Eamings per common share - diluted 0.39 1.79 2.18 $ (0.86) $ 1.53 0.67 $ (0.86) $ 1.53 0.67 $ 0.46 $ 4.54 4.99 $ 0.45 $ 4.51 0.38 1.77 4.96 $ 2.15 767.0 Weighted-average common shares outstanding - basic Weighted average common shares outstanding - diluted See Notes to the Consolidated Financial Statements. 746.3 746.3 526.6 532.7 771.8 DuPont de Nemours, Inc. Consolidated Balance Sheets (In millions, except share and per share amounts) December 31, 2019 December 31, 2018 Assets $ 1,540 $ 3,802 4,319 338 8,548 29 3,391 4,107 305 110,275 126,655 9,999 1,204 24 1,745 28 47 Current Assets Cash and cash equivalents Marketable securities Accounts and notes receivable - net Inventories Other current assets Assets of discontinued operations Total current assets Investments Investments in nonconsolidated affiliates Other investments Noncurrent receivables Total investments Property Property, plant and equipment Less: Accumulated depreciation Property, plant and equipment - net Other Assets Goodwill Other intangible assets Deferred income tax assets Deferred charges and other assets Total other assets Total Assets 32 1,260 1,820 15,112 4,969 10,143 14,116 4,199 9,917 34,496 14,655 178 33,151 13,593 236 1,014 47,994 69,396 $ 134 49,463 187,855 $ 15 3,830 $ 2,934 240 1,342 2,619 115 1,129 69,434 73,312 12,624 8,346 13,617 Liabilities and Equity Current Liabilities Short-term borrowings and finance lease obligations Accounts payable Income taxes payable Accrued and other current liabilities Liabilities of discontinued operations Total current liabilities Long-Term Debt Other Noncurrent Liabilities Deferred income tax liabilities Pension and other post employment benefits - noncurrent Other noncurrent obligations Total other noncurrent liabilities Total Liabilities Commitments and contingent liabilities Stockholders' Equity Common stock (authorized 1,666,666,667 shares of $0.01 par value each; issued 2019: 738,564,728 shares; 2018: 784,143,433 shares) Additional paid-in capital (Accumulated deficit) Retained earings Accumulated other comprehensive loss Unearned ESOP shares Treasury stock at cost (2019: O shares: 2018: 27,817,518 shares) Total DuPont stockholders' equity Noncontrolling interests Total equity 3,514 1,172 1,191 5,877 27,840 $ 3,912 1,343 764 6,019 $ 91,955 7 8 50,796 (8,400) (1,416) 81,976 30,257 (12,394) (134) (5,421) 94,292 1,608 95.900 40,987 569 41,556 $ 69,396 $ 187,855 Total Liabilities and Equity See Notes to the Consolidated Financial Statements. DuPont de Nemours, Inc. Consolidated Statements of Cash Flows 2019 2018 2017 600 $ 4,000 $ 1,291 5,918 3,195 (768) 909 (55) (697) (149) 588 1,175 253 338 (366) 83 58 (2,964) (93) 1,105 3,969 (2,131) 128 1,026 (1,744) (1,172) 1,789 1,491 1,573 470 1,628 720 (In millions) For the years ended December 31, Operating Activities Net income Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation and amortization Credit for deferred income tax and other tax related items Earnings of nonconsolidated affiliates less than dividends received Net periodic pension (credit) benefit cost Pension contributions Net gain on sales of assets, businesses and investments Restructuring and asset related charges - Det Goodwill impairment charges Amortization of merger-related inventory step-up Other net loss Changes in assets and liabilities, net of effects of acquired and divested companies: Accounts and notes receivable Inventories Accounts payable Other assets and liabilities, net Cash provided by (used for) operating activities Investing Activities Capital expenditures Investment in gas field developments Purchases of previously leased assets Proceeds from sales of property and businesses, net of cash divested Acquisitions of property and businesses, net of cash acquired Cash acquired in merger transaction Investments in and loans to nonconsolidated affiliates Distributions and loan repayments from nonconsolidated affiliates Proceeds from sale of ownership interests in nonconsolidated affiliates Purchases of investments Proceeds from sales and maturities of investments Proceeds from interests in trade accounts receivable conduits Other investing activities, net Cash (used for) provided by investing activities (2,227) 387 (1,049) (1,091) 1,409 (1,611) (1,496) 201 (2,452) 4,731 (9,782) (1,818) 2,631 1,514 (765) (2,472) (25) (3,837) (114) (26) 202 (20) 278 (180) (1) (3,570) (121) (187) 2,959 50 4,005 (754) 106 64 (1,690) 4,101 9,462 (100) 14,325 (26) 55 4 (2,787) 3,402 657 28 (2,462) 21 (197) 242 21 (2,313) 2,735 4,005 (6,900) (2,329) 85 223 15,455 (9,009) (4,421) 197 (2,248) 499 (663) (1,000) 66 453 (99) (136) (3,394) (128) (195) 3,491) Financing Activities Changes in short-term borrowings Proceeds from issuance of long-term debt Payments on long-term debt Purchases of common stock Proceeds from issuance of Company stock Proceeds from sale of common stock Employee taxes paid for share-based payment arrangements Distributions to noncontrolling interests Dividends paid to stockholders Cash held by Dow and Corteva at the respective Distributions Debt extinguishment costs Other financing activities, net Cash used for financing activities Effect of exchange rate changes on cash, cash equivalents and restricted cash Cash reclassified as held for sale Decrease in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash from continuing operations, beginning of period Cash, cash equivalents and restricted cash from discontinued operations, beginning of period Cash, cash equivalents and restricted cash at beginning of period Cash, cash equivalents and restricted cash from continuing operations, end of period Cash, cash equivalents and restricted cash from discontinued operations, end of period Cash, cash equivalents and restricted cash at end of period Supplemental cash flow information Cash paid during the year for Interest, net of amounts capitalized (84) (27) (1,611) (7,315) (104) (5) (11,550) 9 (555) 6 (1,918) (344) (32) (6,554) 297 88 7,391 (12,445) 8,591 5,431 14,022 1,577 7 4,441 9,574 14,015 8,591 5,431 14,022 $ 6,624 6,624 4,441 9,574 14,015 1,577 $ 969 s 2,116 5 1,254 722 Income taxes See Notes to the Consolidated Financial Statements. 2,199 1,368