Final answer:
After the 3-for-2 stock split, an investor who owned 400 shares of Herbalife stock will have 600 shares.
Explanation:
In March, stockholders of Herbalife Nutrition approved a 3-for-2 stock split. A stock split occurs when a company increases the number of shares outstanding while proportionally reducing the price of each share. In this case, a 3-for-2 stock split means that for every 2 shares an investor owns, they will receive an additional 1 share.
So if an investor owned 400 shares before the split, they would receive 400/2 = 200 additional shares. Therefore, an investor would have a total of 400 + 200 = 600 shares after the stock split.
Final answer:
To determine the number of shares an investor would have after a 3-for-2 stock split, multiply the original number of shares by 1.5. In this case, an investor with 400 shares would end up with 600 shares after the split.
Explanation:
When a company like Herbalife Nutrition performs a 3-for-2 stock split, each shareholder receives an additional half share for each share they own. Therefore, for every two shares owned, the shareholder will have three shares after the split.
To calculate the new number of shares for an investor who owned 400 shares before the split, we use the following calculation:
Determine the ratio of the stock split which is 3-for-2, meaning that for every 2 shares, it becomes 3 shares.
Calculate the multiplier by dividing the number of new shares by the number of old shares (3 divided by 2 equals 1.5).
Multiply the original number of shares (400) by the multiplier (1.5) to find the new number of shares.
Therefore, 400 shares × 1.5 = 600 shares.
After the stock split, the investor will have 600 shares of Herbalife stock.
Adjustments help to ensure that all revenues are recorded in the period in which they are:______
Answer: made
Explanation: In simple words, adjustment in accounting refers to the transactions that are not recorded in the accounts yet but actually belongs to it with respect to the time period of their occurrence.
There are generally five types adjusting entries accrued revues, accrued expenses, deferred revenues, deferred expenses and deprecation expenses. Such entries are usually made at the end of the year in their respective accounts.
Split-Div, Inc., has issued quarterly dividends of $0.10 per share each quarter over the last few years. This quarter Split-Div initiated a 2-for-1 stock split. What is the minimum quarterly dividend the board of Split-Div should approve to avoid sending a bad signal to investors?
a. $0.02 per share
b. $0.05 per share
c. $0.10 per share
d. $0.20 per share
Answer:
b. $0.05 per share
Explanation:
A stock split is conducted by companies to make investors have additional share(s) for each share they already own. One of the reasons why a company would do this is to make each share less expensive especially if it has realized that similar shares in the industry are selling at a price significantly lower that its own shares. However, it is important to note that the value of each investor's holding remains the same.
In this case, a 2-for-1 stock split means that an investor who has 1 share will now have 2 shares. However, the cumulative value of these shares is equal to the 1 share each held before the split, so is the dividend.
If dividend for 1 share = $0.10 in dividend
with a 2-for-1 stock split, each share should earn a minimum dividend of (0.10 /2 = $0.05) to avoid sending bad signals to investors
In accrual accounting, to defer means to recording the other side of the cash transaction as a revenue or expense. Instead the other side of the cash entry is recorded as liability or prepaid:_____
Answer:
Expense
Explanation:
In accrual accounting, to defer means to recording the other side of the cash transaction for revenue as a liability usually referred to as deferred or unearned revenue.
For expense, it is recognized as prepaid expenses meaning that the expense for which cash was paid will be enjoyed in the future.
Therefore, the other side of the cash entry is recorded as liability or prepaid expense.
In accrual accounting, deferring means recording the other side of the cash transaction as a liability or prepaid instead of revenue or expense.
Explanation:In accrual accounting, deferring means recognizing revenue or expenses in a different period than when cash is received or paid. Instead of recording the other side of the cash entry as revenue or expense, it is recorded as a liability or prepaid. This is done to match revenues and expenses with the period they are earned or incurred, resulting in more accurate financial statements.
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How will a recession in Japan affect the Singapore's economy, given that Singapore is an important trading partner?
A. Singapore's net exports are likely to fall because Japan's recession will reduce Singapore's imports.
B. Singapore's net exports are likely to fall because Japan's recession will reduce Japan's imports.
C. Singapore's net exports are likely to rise because Japan's recession will discourage its other trading partners from buying Japanese purchase products.
D. Singapore's net exports are likely to rise because shortages in Japan due to its recession will discourage Singapore's exports to Japan.
Answer:
The sino-japanese war was fought between Japan and China
Explanation:
........................
The advantage of extending credit to customers is that it helps customers to buy products and services, thereby increasing the seller's revenue. The disadvantages of extending credit are costs related to_________.
a.marketing.
b.increased notes receivable.
c.increased sales.
d.bad debt expense.
Answer:
d.bad debt expense.
Explanation:
Bad debts expense is an account receivable that is no longer collectible. Bad debt is a debt obligation by a customer of which he or she is unable to pay. It arises when the company sells goods on credit, but unfortunately, the customer fails to pay.
Customers fail to honor payments due to financial challenges or bankruptcy. Bad debts are a cost to the business. When a bad debt has been realized, the amount is debited to the bad debts expense account and credited to accounts receivable. Bad debts reduce the amounts expected as inflow and increase costs in a business. To mitigate against bad debts, companies provide an allowance for bad and doubtful debts.
The ________ is a budget based on multiple levels of projected sales or production.
Answer: The Flexible Budget
Explanation:
A flexible budget is a budget that is prepared to cater for various levels of activity, i.e. differing levels of budget production or sales units. It is a budget that helps management prepare for different scenarios and quickly compute variances no matter the level of activity.
It is better than a static budget, which doesn't make adequate provision for circumstances that could be beyond the company's influence and control.
Colossal Choco Chipper is a new, gigantic chocolate chip cookie created by the Kookie Cookie Company. To create interest for the Colossal Choco Chipper, the company sent a free package of six cookies to selected homes along with a coupon. Kookie Cookie's activities represent__________.a. consumer publicity.b. public relations.c. sales promotion.d. trade advertising.
Answer:
The correct option is C that is Sales Promotion
Explanation:
Sales Promotion is the term which is described as the procedure of persuading the customer so that the customer buy the product. It is designed or created to be used as a tactic which is short-term in nature in order to boost the sales.
So, the company sent free package having 6 cookies to the selected homes with the coupons. Therefore, the activity of the company represent the sales promotion of the product.
When the company sent a free package of six cookies to selected homes along with a coupon, this represent a Sales Promotion.
A Sales Promotion refers to series of procedure used in persuading the customer so that they can customer buy the offered product.
Hence, the free package of six cookies sent to selected homes along with a coupon represent a Sales Promotion.
Therefore, the Option C is correct
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Rather than competing head to head with established competitors, many companies seek out unoccupied positions in uncontested market spaces. They try to create products and services for which there are no direct competitors. This is called a ________.
a. "red ocean strategy"
b. "strategic sweet spot"
c. "common platform"
d. "blue ocean strategy"
e. "strategic platform"
Answer:
The correct answer is d. "blue ocean strategy".
Explanation:
The strategy seeks to set aside competition between companies, expanding the market through innovation. What companies need to be successful in the future is to stop competing with each other. In the last twenty-five years, all strategic thinking has been directed to the red ocean; The administration defines that in the competition there is the success or failure of the companies, which has allowed many to know how to perform skillfully in this world, but ignoring that another type of strategy could generate better results, without worrying so much about the competition.
The red ocean represents all existing industries today. These companies must have clearly marked limits, as well as defined competencies, and their objective is to overcome the rival and gain a great position in the market. They are constantly exposed to the emergence of new competitors, which decrease their chances of growth. Usually, this type of ocean is the reality of every business.
Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call premium of $10,000. The bonds have a carrying value of $990,000. We call these bonds prior to maturity on September 30. Complete the necessary journal entry.a. bonds payable 1,000,000b. loss on bond retirement 20,000c. discount on bond 10,000d. cash 1,010,000
Answer:
bonds payable 1,000,000 debit
loss on redemption 20,000 debit
discount on bonds 10,000 credit
cash 1,010,000 credit
--to record tyhe call of the bonds on September 30th--
Explanation:
par value of the bonds: 1,000,000
call premium: 10,000
total cash disbusements: 1,010,000
carrying value 990,000
loss on redemption 20,000
Notice: It is a loss as we are paying more than the aliability is worth
discount/premium:
face value 1,000,000
carrying value 990,000
discount 10,000
We write off the bonds account: bond payable and bon discount
we debit the loss and credit hthe cash disbursments
The necessary journal entry for the redemption of callable bonds involves debitting 'Bonds Payable', 'Loss on Bond Retirement' and 'Discount on Bond', while crediting 'Cash'. Business accounting records these events to accurately represent the company's financial status.
Explanation:This appears to be a question concerning how to record the redemption of callable bonds in accounting. Ajax, Inc. has issued callable bonds with a par value of $1,000,000 and these were called prior to maturity, resulting in a call premium of $10,000.
Seeing as the carrying value of the bonds is $990,000, the company incurs a loss since the carrying value is less than the par value. Hence, in order to record this transaction, we debit 'Bonds Payable' for $1,000,000 (the par value), debit 'Loss on Bond Retirement' for $20,000 (the difference between the par value and carrying value), debit 'Discount on Bond' for $10,000 (the remaining value from the discount), and credit 'Cash' for $1,010,000 (the amount paid to redeem the bonds plus the call premium).
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Sam runs a red light and has an accident. He is sued. Sam contacts the only eyewitness, Curtis, and offers him $1000 if he does not testify at the trial. Curtis, who didn’t see Sam run the red light, does not testify and seeks payment of the $1000 from Sam. Sam refuses to pay. May Curtis enforce the contract with Sam?
Answer:
..
Explanation:
Well he did what was asked on the contract so Sam should pay and therefore yes he can enforce the contract
Morgner Heating and Cooling offers customers who buy air conditioners and furnaces free delivery and low installation charges. The company also offers a free follow-up inspection of the new equipment one month after it is installed. These services are ways that Morgner provides its customers with __________ utility.a. possession
b. time
c. marginal
d. situational
Answer:
a. possession
Explanation:
In this scenario it seems that these services are ways that Morgner provides its customers with possession utility. This term refers to the value that a customer will place when purchasing a certain product, as well as the use that they give that product. By providing these additional services with the purchase of a product, the customers place higher value on the product and end up purchasing it as opposed to the competitors.
CAD workstations: facilitate employee learning. provide engineers, designers, and factory managers with precise control over industrial design and manufacturing. allow groups to work together on documents. provide an important source of expertise for organizations. are high-end PCs used in the financial sector to analyze trading situations instantaneously and facilitate portfolio management.
Answer:
The correct answer is Provide engineers, designers, and factory managers with precise control over industrial design and manufacturing.
Explanation:
There are many reasons (and components) with which to answer this question, but it all comes down to one thing in the end: productivity. A professional Workstation for CAD pays its cost very quickly with increasing productivity because it allows you to work much faster and is significantly more reliable.
The most notable negative impact on productivity derives from poor reliability. A computer that does not work well puts us in the worst time-wasting situation. That is why high-speed computers for CAD are built alone and only with maximum quality components and are designed for maximum reliability, not just for maximum speed. The reduction or near elimination of downtimes, or breakdowns or problems of one kind or another, is the fundamental advantage of CAD stations compared to cheap PCs with low cost components.
A receiving department compares inventory items received with copies of purchase orders. The purchase orders list the name of the vendor and do not list the quantities of the material ordered. Using the purchase orders, the receiving department is most likely to detect_________
Answer:
The answer is Deliveries for which no purchase order was issued.
Explanation:
A receiving department compares inventory items received with copies of purchase orders. The purchase orders list the name of the vendor and do not list the quantities of the material ordered. Using the purchase orders, the receiving department is most likely to detect____Deliveries for which no purchase order was issued._____
erfectly ________ correlated series move exactly together and have a correlation coefficient of ________, while perfectly ________ correlated series move exactly in opposite directions and have a correlation coefficient of ________.
A. negatively; -1; positively; +1
B. negatively; +1; positively; -1
C. positively; -1; negatively; +1
D. positively; +1; negatively; -1
Answer:
D. positively; +1; negatively; -1
Explanation:
Correlation measures the relationship that exists between two variables.
A variable is perfectly correlated when there's a relationship between the variables; when they move in the same direction. An increase in one variable leads to a corresponding equal increase in the other variable.
A variable is perfectly negatively correlated if the relationship between the two variables is perfectly negative. An increase in one of the variables leads to a corresponding equal decrease in the other variable.
No correlation is when there's no relationship between variables.
We can say price is negatively correlated to quantity demanded but positively correlated to quantity supplied.
Correlations can be depicted in scatter diagrams
You are in charge of your country's currency, which is backed by a gold standard. Unfortunately, gold production is dropping sharply and is not expected to recover. What is your best option?
Answer:
The best option is to shift to fiat currency.
Explanation:
A fiat currency is the type of currency which is not backed by any valuable asset but by the government that has issued it. Commodity money, on the other hand, is the money which is backed by some physical commodity, generally a valuable asset such as gold or silver.
In the case of commodity money, its value is based on the value of the asset it is backed by.
If a currency is backed by gold and gold production is declining sharply and is not expected to rise. Then in this situation, the government will not be able to increase the money supply.
In this situation, the best option is to move to fiat currency which is not backed by any asset so its value will not fluctuate with the value of the underlying asset.
One reason why the average salary of Major League Baseball players is higher than the average salary of college professors is the careers of most baseball players are much shorter than the careers of most college professors. college professors accept lower salaries in exchange for better working conditions. competition among baseball club owners forces player salaries to be much higher than the players' marginal revenue products. the marginal revenue product of baseball players is greater than the marginal revenue product of college professors.
Answer:
the marginal revenue product of baseball players is greater than the marginal revenue product of college professors.
Explanation:
Baseball players are responsible for a baseball teams' revenues, and they add up billions of dollars per year. For example, Max Scherzer sells jerseys, caps and other merchandise for millions of dollars, and his team winning the World Series this year increases the team's revenue greatly. Sometimes even without winning a championship some players still generate lots of revenue.
An individual's salary should be proportional to the revenue that they generate. Colleges have huge amounts of revenue, and college professors are responsible for a large portion of it.
The problem hear is that there are a lot of college professors and assistants, and the revenue must be split between many people. For example, Harvard University's revenue is about $5.5 billion per year, but it has over 16,000 employees (including about 2,400 professors).
A bond is__________.
A. a debt instrument, that is, the issuer has taken out a loan.
B. an equity instrument, that is, the buyer has purchased ownership in the issuer's firm.
C. the same thing as a stock.
D. a short-term loan from the government.
Answer:
The correct answer is A.
Explanation:
Bond is the instrument which is a fixed income and it represents a loan that is made by an investor to the borrower It is an IOU among the borrower and the lender which involves the payment as well as the loans details. It is used by the companies, states, sovereign governments and municipalities for financing the operations of the business.
Therefore, it is a instrument of debt, which the issuer has taken a loan.
The sustainable infrastructure pressure of increased energy consumption poses new and growing pressure. The energy consumed by a computer is estimated to produce as much as 10% of the amount of carbon dioxide produced by a ________.A. houseB. schoolC. carD. cell phone
Answer:
car
Explanation:
Based on various studies conducted in regards to environmental safety and global-warming gases it is said that the energy consumed by a computer is estimated to produce as much as 10% of the amount of carbon dioxide produced by a car. Since a car produces roughly 4.6 metric tons of carbon dioxide per year. It seems that the energy consumption for computers is creating an approximated 0.46 metric tons of carbon dioxide a year.
There are five basic keys to generating buzz in the marketplace. Among them is the need to stop thinking in terms of one-way communication and start thinking in terms of the dialogue. This represents which of the five Ts __________.
Hey! How are you? My name is Maria, 19 years old. Yesterday broke up with a guy, looking for casual sex.
Write me here and I will give you my phone number - *pofsex.com*
My nickname - Lovely
JME Manufacturing put together a group of employees from marketing, engineering, manufacturing, and quality control to come up with a new product idea. This is an example of a(n) _____ group.
Answer:
cross functional group
Explanation:
cross functional group is a team of different expertise employee who work different in their specific field for the one common goal i.e. progress of the organisation.
For production of any product different department worked together to give product final touch from research team to the quality team. It is combined form of one corporation which include worker or employee of different skills who has one common goal.
Athena Jolene, a human resources executive at Thomas Griffith, wants to collect ideas from the company's employees for an upcoming company-wide event. The company has offices spread across the country. Which of the following techniques will best help Athena receive suggestions from employees, while also allowing employees to share their ideas with one another?
Answer:
Online discussion forum
Explanation:
Based on the information provided within the question it can be said that the best method would be to use an Online discussion forum. These are websites in which anyone can connect and give their thoughts and opinions on a specific topic and discuss with anyone who would like to join in. Which is what would allow Athena to collect ideas from all the company employees at the same time.
Final answer:
Athena Jolene can collect and share employee suggestions effectively by creating an internet-posted forum, holding regular video conference meetings, and distributing staff surveys. This approach will foster direct communication and participation, aligning with the company's values and promoting a collaborative event planning process.
Explanation:
To effectively collect and share ideas from employees for the upcoming company-wide event, Athena Jolene can implement a system that encompasses direct communication, utilization of an internet-posted forum, and the facilitation of regular meetings. An intranet forum would serve as an open floor plan online, allowing employees from different offices to post their suggestions and discuss others' ideas, thus maintaining Athena's approachability and fostering a participatory culture. Additionally, regularly scheduled video conferencing sessions could help to celebrate achievements and gather real-time feedback, while staff surveys could be distributed to solicit further input from the company's 10,000 employees.
Athena could also consider sharing stories that illustrate the company's values and past successes in organizing events, as these narratives often engage employee emotions and foster identification with the company's ethos. This multi-faceted approach ensures that employee ideas are not only heard but also respected and acted upon, thus contributing to a more collective and inclusive event planning process.
Android Products, Inc., agreed to accept a $1,000, one-year, 10 percent note from C. Mate. On its maturity date of December 16, Mate honors the note by making a payment of $1,100. That payment consisted of the principal of $1,000 plus interest in the amount of $100 (computed as $1,000 × 10%).
Prepare the necessary December 16 entry for Android by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $1,100
To Interest revenue $100
To Note receivable $1,000
(Being cash received in respect of note receivable, interest accrual is recorded)
The computation of accrued interest is shown below:
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= 1,000 × 10%
= $100
Pernell Company reported LIFO reserves of $150,000 and $100,000 in 2016 and 2015, respectively. The company utilized the FIFO assumption for internal purposes. Based on this information, we can conclude that Pernell's cost of goods sold for the 2016 fiscal year would have been:
The LIFO reserve increased from 2015 to 2016, indicating Pernell's cost of goods sold for 2016 would have been $50,000 lower under the FIFO method, due to an accumulation of older, cheaper cost layers under LIFO during a period of rising prices.
Explanation:The LIFO reserve is the difference in reported inventory cost by a company between the LIFO (Last-In, First-Out) and FIFO (First-In, First-Out) methods. In this scenario, Pernell Company reports an increase in LIFO reserve from $100,000 in 2015 to $150,000 in 2016. This indicates that the cost of inventory was higher under the FIFO method. Therefore, had Pernell used the FIFO method instead of LIFO, their cost of goods sold (COGS) for 2016 would be $50,000 lower than what they reported under the LIFO method. This is because an increase in the LIFO reserve indicates that older, cheaper cost layers are still in inventory under LIFO during periods of rising prices.
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Which of the following statements is TRUE?
A. Not-for-profit business-oriented health care organizations use accrual accounting
B. Government owned hospitals follow FASB Statements (116 and 117) for not-for-profit organizations
C. Government-owned health care organizations do not report depreciation expense
D. The AICPA Health Care Guide provides accounting and reporting requirements that override GASB and FASB standards, but apply only to health care providers
E. Both commercial and private sector not-for-profit hospitals and health care providers follow FASB Statements 116 and 117
Answer:
C. Government-owned health care organizations do not report depreciation expense
Explanation:
C. Government-owned entities do not provide for depreciation of assets, they are written off immediately they are acquired
Alexandra is constantly creating more work for Susan, yet Susan completes all of this additional work and, in turn, Alexandra continues her behavior. Which of the following methods to reward performance explains why Alexandra continues this behavior?A) PunishmentB) Positive ReinforcementC) ExtinctionD) ProbationE) Negative Reinforcement
Answer: positive reinforcement
Explanation: Reinforcement is explained as actions taken to either reduce or increase a certain behavior.
Positive reinforcement are action taken to increase a behavior either positive or negative behavior.
In the question Susan is positively reinforcing Alexandra's negative lazy attitude.
On May 2, Wainwright Company receives a $3,000, 4-month, 10% note from Fulton Company as a settlement of its accounts receivable. What entry will Wainwright Company make when it receives the note on May 2?
Answer:
Debit Credit
Note receivable 3,000
Accounts receivable 3,000
Explanation:
In this case the Wainwright company is receiving an asset in the form of note receivable, and we will debit note receivable by 3,000 as an asset is increasing by 3,000 and whenever an asset increases we make a debit entry by the same amount.
Also Wainwright company is receiving this note as a settlement to its account receivable, which means that one of it's asset is decreasing by 3000, and whenever an asset decreases we make a credit entry by the same amount, so in this case we will credit accounts receivable by 3000.
A political ad that incorporates a fear appeal would most likely be expressed as_______. A. religious repercussions after death.B. disenfranchisement from mainstream society.C. a lack of patriotic responsibility.D. a lack of self-respect or self-worth.E. warnings against the rise of other, unpopular ideologies.Fear appeals suggest to the consumer that some negative experience or outcome can be avoided if a certain good or service is purchased or behavior is changed..
Answer:
E.
Explanation:
A political ad that incorporates a fear appeal would most likely be expressed as warnings against the rise of other, unpopular ideologies. This is because a Fear Appeal uses a persuasive message in order to stir up emotions of fear within the viewers so that they act in a certain way that would prevent what they are afraid of. In political ads, this fear stems from the consequences that are states by the political party, if the viewers follow an opposing "unpopular" ideology.
Wendy's fast-food restaurant chain priced several of its more popular menu items at $.99 while raising the price of some of its upgraded meal deals. This pricing strategy is an example of _____ pricing because the chain is trying to improve the customer's perception of the ratio of benefits received to the product's price.
A) Fair trade.
B) Value.
C) Psychological.
D) Cost-plus.
E) Penetration.
Answer: Value pricing
Explanation: In simple words, value pricing refers to a pricing strategy in which an organisation prices its product on the basis of the utility value that the customers perceive for the product rather than on the basis of the cost of producing the product.
For example- Ferrari charges its customers more for a red colored sports car although the cost of producing any color is the same.
Hence from the above we can conclude that company is doing value pricing.
Suppose that at the same time Congress and the president pursue an expansionary fiscal policy, the Federal Reserve pursues an expansionary monetary policy. How might an expansionary monetary policy affect the extent of crowding out in the short run?
Answer:
The correct answer is an expansionary monetary policy would DECREASE interest rates and thus REDUCE the extent of crowding out.
Explanation:
Expansive monetary policy is a type of monetary policy that is mainly characterized by trying to stimulate the size of a country's money supply. Those responsible for its control are generally a central bank or other similar economic power.
When individuals prefer to save money instead of spending it or investing it, aggregate demand is very weak, which can lead to recessions. Through the performance in financial markets with expansive monetary measures, we seek to move towards economic growth and job creation by companies in a country. This makes the use of expansionary monetary policies frequent in situations of economic crisis or recession. Through various stimuli, on the one hand, it is about stimulating the production of goods and services and, therefore, the level of income of its citizens. On the other hand, it is about influencing the markets so that banks grant greater credit to families and businesses.
Over the first four years of a company's life, it earned the following net income (loss): $10,000; $5,000; $6,000, and ($4,000). If the company's ending retained earnings is $14,200 after year 4, what is the average amount of dividends paid per year?
Answer:
$700
Explanation:
Total earnings in 4 years
= 10000 + 5000 + 6000 - 4000
= $17,000
Ending retained earnings after 4 years
= $14,200
Total amount paid out as dividend in 4 years
= 17000 - 14200
= $2,800
Average amount of dividends paid per year
= $2,800/4
= $700
Final answer:
The company paid an average of $700 in dividends each year over the four-year period, which is determined by subtracting the total increase in retained earnings from the total net income and then dividing by the number of years.
Explanation:
To calculate the average annual dividends paid by the company, we first need to determine the company’s total retained earnings over the four-year period and then subtract that from the total net income (loss). The net incomes over the first four years are $10,000, $5,000, $6,000, and ($4,000), which when summed up equals $17,000. The ending retained earnings after year 4 is $14,200.
The total increase in retained earnings over the four years can be found by subtracting the starting retained earnings (which can be considered zero if not provided) from the ending retained earnings. Assuming the company started with a retained earnings balance of zero, the increase in retained earnings over the four years is the ending retained earnings value of $14,200.
To find the total dividends paid out over the four years, we subtract the increase in retained earnings from the total net income: $17,000 (total net income) - $14,200 (increase in retained earnings) = $2,800 (total dividends paid). To find the average dividends paid per year, we divide the total dividends paid by four (the number of years): $2,800 / 4 = $700. Therefore, the company paid an average of $700 in dividends each year.