Solving for Stockholders' Equity Amounts
Assume that the following amounts are known for Colten Company for the current year:
|
Retained Earnings, beginning balance
|
$210,000
|
|
Retained Earnings, ending balance
|
250,000
|
|
Net income
|
115,000
|
|
Fair value of large stock dividend declared
|
25,000
|
|
Dividend Payable, beginning balance
|
75,000
|
|
Dividend Payable, ending balance
|
80,000
|
Required
1. Assume that the only other amount that affected Retained Earnings during the year was a cash dividend that was declared. Compute the amount of the cash dividend declared during the current year.
2. Compute the amount of cash dividends actually paid in cash to stockholders during the year.