ONUNSUSSIONLocatorkinprogress=false Solving for Stockholders' Equity Amounts Assume that the following amounts are known for Miles Company for the current year: Retained Earnings, beginning balance $420,000 Retained Earnings, ending balance 500,000 Cash dividends declared 100,000 Fair value of large stock dividend declared 50,000 Dividend Payable, beginning balance 90,000 Dividend payable, ending balance 80,000 Required: 1. Assume that the only other amount that affected Retained Earnings during the year was the net income. Compute the net income for Miles Company for the current year. 80,000 X 2. Compute the amount of cash dividends actually pald in cash to stockholders during the year. 110,000 COM 1) Retained Earnings is increased by Net income and reduced by cash and stock dividends. 2) Dividends payable is increased by declared cash dividends and reduced by the payment of cash dividends. Check My kinek Previous Next