The right side of the balance sheet shows the firms liabilities and stockholders equity.

Which of the following best describes shareholders equity?

* is the difference between the companys assets and retained earnings.

* Equity is the sum of shareholders capital provided by shareholders and retained earnings.

NOW Inc. released its annual results and financial statements. Grace is reading the summary in the business pages of todays paper. In its annual report this year, NOW Inc. reported a net income of $192 million. Last year, the company reported a retained earnings balance of $442 million, whereas this year it increased to $520 million. How much was paid out in dividends this year?

$270 million

$3 million

$114 million

$575 million