Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 9,200 Cost of goods sold 7,390 Depreciation 305 Earnings before interest and taxes $ 1,505 Interest paid 87 Taxable income $ 1,418 Taxes 425 Net income $ 993 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $ 240 $ 255 Accounts payable $ 1,380 $ 1,315 Accounts rec. 1,020 730 Long-term debt 1,130 1,400 Inventory 1,620 1,640 Common stock 3,280 3,010 Total $ 2,880 $ 2,625 Retained earnings 460 710 Net fixed assets 3,370 3,810 Total assets $ 6,250 $ 6,435 Total liab. & equity $ 6,250 $ 6,435 What were the total dividends paid for 2017?

Question

Andrea Hayden

Business

23 April, 07:06

Use the following information to answer this question. Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 9,200 Cost of goods sold 7,390 Depreciation 305 Earnings before interest and taxes $ 1,505 Interest paid 87 Taxable income $ 1,418 Taxes 425 Net income $ 993 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $ 240 $ 255 Accounts payable $ 1,380 $ 1,315 Accounts rec. 1,020 730 Long-term debt 1,130 1,400 Inventory 1,620 1,640 Common stock 3,280 3,010 Total $ 2,880 $ 2,625 Retained earnings 460 710 Net fixed assets 3,370 3,810 Total assets $ 6,250 $ 6,435 Total liab. & equity $ 6,250 $ 6,435 What were the total dividends paid for 2017?

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Bentley Bruce · Answer 1

Dividend Paid $743

Explanation:

From retained earnings, we can work out dividend paid

Retained earnings beginning $460

Net income for the year $993

Retained earnings-closing ($710)

Divided paid $743