Dividends and Dividend Preferences Video Lessons

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Problem: Gerald had beginning total stockholders' equity of $160,000. During the year, total assets increased by $240,000 and total liabilities increased by $120,000. Gerald's net income was $180,000. No additional investments were made; however, dividends did occur during the year. How much were the dividends? a. $20,000. b. $60,000. c. $140,000. d. $220,000.

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Problem Details

Gerald had beginning total stockholders' equity of $160,000. During the year, total assets increased by $240,000 and total liabilities increased by $120,000.

Gerald's net income was $180,000. No additional investments were made; however, dividends did occur during the year. How much were the dividends?

a. $20,000.

b. $60,000.

c. $140,000.

d. $220,000.

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Based on our data, we think this problem is relevant for Professor Reinking's class at UCF.