Question

Can someone help me calculate the dividends paid. I input $324 and $274 and neither is correct. Please show the steps. thank you!

HW Saved Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not The following condensed information was reported by Peabody Toys, Inc., for 2021 and 2020: (s in thousands) 2021 2020 $ 6,900 374 $ 5,989 158 Income statement information Net sales Net income Balance sheet information Current assets Property, plant, and equipment (net) Total assets Current liabilities Long-term liabilities Common stock Retained earnings Liabilities and shareholders' equity $ 970 2,630 $ 3,600 $1,660 920 700 320 $ 3,600 $ 920 2,280 $ 3,200 $1,319 920 700 270 $ 3,200 Required: 1. Determine the following ratios for 2021: (Round your percentage answers to 1 decimal place.) 2. Determine the amount of dividends paid to shareholders during 2021. (Enter your answers in whole dollars, not example, $150,000 rather than 150.) Answer is complete but not entirely correct. 1a. 1b. 1c. 2. % % 5.4 11.0 37.6 274 X Profit margin on sales Return on assets Return on equity Dividends paid $ Next

Answer 1

1a 1b Profit Margin on Sales Return on Assets Return on equity Dividend paid 5.4 % 11 % 37.6 % $324 % 1C 2 1a. Profit Margin on Sales = Net income/Net Sales Profit Margin on Sales = $374/6900 Profit Margin on Sales = 0.054 1b. Return on Assets = Net income/Average Assets Average Assets $(3600+3200)/2 =3400 Return on Assets = $374/3400 Return on Assets = 0.11 1c. Return on Shareholder's Equity = Net Income/Shareholders Funds Shareholders Equity = paid in capital + retained earnings Average Equity = (1020+970)/2 = 995 Return on Equity = 374/995 Return on Equity = 0.376 2 Net Income for the year = $ 374 Increase in Retained Earnings = $50 Dividend paid = $324

Dividend Calculation Retained Earning 2020 Add: Net Income Amount$) 270 374 644 320 324 Less : Retained Earning 2021 Dividend So Dividend is diffrence $ 644 - 320 = $ 324

Hope You Understood. If you have any doubt please leave a comment. Thank You