1. Neither firm issued any new stock or bought back any stock or had any other special activity in the shareholders equity account during 2016, so the only change in equity was the change in the retained earnings account. Both firms paid large cash dividends to shareholders at the end of the year. Given that information, how much did these firms pay to shareholders at the end of 2016?

Income Statement Revenues Cost of Goods Sold Gross Profit Operating Expenses Operating Income Interest & Other Non-Oper Exp Earnings Before Taxes Income Tax Net Income Firm A 2016 2015 58,811 63,740 35,830 38,206 22,981 25,534 6,611 6,116 16,370 19,418 368 350 16,002 19,068 4,278 5,215 11,724 13,853 2014 49,853 30,616 19,237 4,923 14,314 267 14,047 3,811 10,236 Firm B 2016 2015 350,052 347,379 258,040 257,846 92,012 89,533 72,752 69,315 19,260 20,218 1,090 1,105 18,170 19,113 6,389 6,572 11,781 12,541 2014 349,894 260,776 89,118 66,727 22,391 1,251 21,140 7,642 13,498 Number of shares outstanding 18,000 18,000 18,000 25,000 25,000 25,000 Balance Sheet Cash & Cash Equiv Accounts Receivable Inventory Total Current Assets Net Property, Plant, & Equipment Intangible Assets Total Assets 47,409 45,133 29,299 30,343 12,133 12,355 88,841 87,831 25,119 22,471 8,941 8,816 122,901119,118 29,134 31,527 18,199 78,860 20,624 8,744 108,228 11,397 10,699 22,328 44,424 71,066 11,513 127,003 11,287 10,557 23,290 45,134 71,970 11,246 128,350 12,929 11,343 24,426 48,698 74,672 10,203 133,573 Accounts Payable Short-Term Debt Long-Term Debt Shareholders Equity Total Liabilities & Equity 51,161 11,605 16,477 43,658 122,901 49,661 10,999 4,399 54,059 119,118 47,559 4,308 987 55,374 108,228 41,912 33,341 11,430 40,320 127,003 49,147 17,095 16,814 45,295 128,351 53,440 16,738 18,703 44,692 133,573 Dupont Analysis: Net Profit Margin Total Asset Turnover Equity Multiplier Return on Equity 19.9% 0.48 2.82 26.9% 21.7% 0.54 2.20 25.6% 20.5% 0.46 1.95 18.5% 3.4% 2.76 3.15 29.2% 3.6% 2.71 2.83 27.7% 3.9% 2.62 2.99 30.2% 0.68 Current Ratio Quick Ratio Cash Ratio 1.42 1.22 0.76 1.45 1.24 0.74 1.52 1.17 0.56 0.59 0.29 0.15 0.33 0.17 0.69 0.35 0.18 Inventory Turnover (Sales basis) Accounts Receivable Turnover Fixed Asset Turnover 15.7 32.7 2.1 bo? 14.9 32.9 4.8 14.3 30.8 4.7 2.8 2.4 Debt Ratio 64% 55% 49% 68% 65% 67%