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Chariot Posted 20 years ago
Business & Finance

a business question

In a company's income statement, the net income or net profit doesn't take into account the dividends. Are the dividends to be paid out of the net income? thanks a lot.
  

Top answer

If dividends are issued, I believe the usual thing to do is issue a supplementary Statement of Retained Earnings: Retained Earnings @ 1 Jan + Net income Subtotal - Dividends Retained Earnings @ 31 Dec

— Mister Micawber

  • If dividends are issued, I believe the usual thing to do is issue a supplementary Statement of Retained Earnings: Retained Earnings @ 1 Jan + Net income Subtotal - Dividends Retained Earnings @ 31 Dec
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1 Answers
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If dividends are issued, I believe the usual thing to do is issue a supplementary Statement of Retained Earnings:

Retained Earnings @ 1 Jan
+ Net income
Subtotal

- Dividends
Retained Earnings @ 31 Dec
0

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