The following section is taken from Silk Ltd's statement of financial position at 31 December 2016. Share capital $5 000 000 Reserves 212 000 Retained earnings 42 000 Additional information: 1. Equity was $5 225 000 at 31 December 2015. 2. Silk Ltd's profit for the year ended 31 December 2016 was $60 000. 3. Cash dividends declared for the year ended 31 December 2016 were $31 000. 4. The directors of the company approved a transfer of $20 000 to reserves. This was recorded in the ledger and is the only item affecting reserves during the year. Page 1 ACCT 10002: Introductory Financial Accounting Tutorial 8 - Exercises Required: (a) Journalise the dividends declared. (b) Calculate the dividend payout ratio. (c) Calculate the return on ordinary shareholders' equity. (d) Prepare a statement of changes in equity for the year ended 31 December 2016. Statement of Changes in Equity Share Capital Reserves For the Year ending 30 June 2016 Total Retained Earnings $ $ $ Balance 1 January 2016 Operating Profit Cash Dividends Reserves Balance 31 December 2016