Can someone help me with this accounting problem?

Question

The Kroger Co. is one of the largest retailers in the United States and also manufactures and processes some of the food for sale in its supermarkets. Kroger reported the following January 31 balances in its stockholders’ equity accounts (dollars in millions):

Common stock $955 $947

Paid-in capital $3,266 $3,031

Retained earnings $7,489 $6,480

During the current year, Kroger reported net income of $1,249.

(The first column is the current year and the second column is the previous year)

How much did Kroger declare in dividends for the year?

Can someone please explain how to do this?

Thank you!

Answer 1

Favorite Answer

Retained Earnings:

Beginning balance 6,480

Plus Net Income 1,249

Less Dividends Declared ?

Ending Balance 7,489

Dividends Declared = 240