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On its 2016 balance sheet, Ideal Companies showed $510 million of retained earnings, and exactly the same amount was shown the following year. Assuming that
On its 2016 balance sheet, Ideal Companies showed $510 million of retained earnings, and exactly the same amount was shown the following year. Assuming that no earnings restatements were issued, which of the following statements is CORRECT?
The company must have had no sales growth in 2017.
The company must have paid no dividends in 2017.
Dividends could have been paid in 2017, but they would have had to equal the earning for the year.
If the company lost money in 2017, they must have paid dividends.
The company must have paid out half of its earnings as dividends.
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