Reference no: EM132386739

Question

Assume that the following amounts are known for Miles Company for the current year:

Retained Earnings, beginning balance $ 420,000

Retained Earnings, ending balance $ 500,000

Cash dividends declared $ 100,000

Fair value of large stock dividend declared $ 50,000

Dividend Payable, beginning balance $ 90,000

Dividend Payable, ending balance $ 80,000

1 Assume that the only other amount that affected Retained Earnings during the year was the net income. Compute the net income for Miles Company for the current year.

2 Compute the amount of cash dividends actually paid in cash to stockholders during the year.