Question
The Big Company's following financial information related to its retained earnings for the year ended December 31, 2020 . (All dollar amounts in thousands.) Retained
The Big Company's following financial information related to its retained earnings for the year ended December 31, 2020. (All dollar amounts in thousands.)
- Retained earnings balance as of January 1, 2020: $33,190
- Net sales for year 2020: $7,302
- Net income for year 2020: $1,460
- Dividends paid to shareholders in year 2020: $168
For year 2021, net income is forecasted to be $1,494. Use the information above to forecast the following amounts for year (2021).
| a. | What is the forecasted amount of dividends paid to shareholders in year 2021? | |
| b. | What is the forecasted ending balance of retained earnings as of December 31, 2021? |
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
12th edition
1305041399, 1285078586, 978-1-133-9524, 9781133952428, 978-1305041394, 9781285078588, 1-133-95241-0, 978-1133952411
