On 12/31/18, Hite Industries reported retained earnings of $475,000 on its balance sheet, and it reported that it had $135,000 of net income during the year. On its previous balance sheet, at 12/31/17, the company had reported $445,000 of retained earnings. No shares were repurchased during 2018. How much in dividends did the firm pay during 2018?

Hite Industries paid dividends amounting to $105,000 during 2018.

$105,000 represents the net income minus the change in retained earnings.

The change in retained earnings is the difference between the closing balance and the opening balance, i.e. $30,000 (475,000 - 445,000).

The net income is $135,000.  When $30,000 is subtracted from it, the result is $105,000, representing the dividend paid out for the year.

Explanation:

Dividend is paid out from net income for the years, otherwise called Retained Earnings.  This means that Retained Earnings are accumulated net income over the years.

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%