How to calculate dividends declared?
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 statement of stockholders’ equity (dollars in millions):
Current Year Prior Year
Common Stock $ 964 941
Paid-in Capital 3406 3121
Retained Earnings 7449 6360
Reported net income for current year: $1237
Question: How much did Kroger declare in dividends for the year?
The answer is not 148. Everywhere online says to do (net income+retained earnings prior year-retained earnings current year) but that process gets denied on my online homework. Is there a way to do this question where you have to use the common stock and paid-in capital figures?
- SandyLv 76 years agoFavorite Answer
If you know the year you're referring to, you can get the answer off the statement of stockholders’ equity. Kroger may have items of OCI transferred to Retained earnings. You can't get the amount of dividends just from the info given above.
- 4 years ago
Its -148 not 148.