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A business question

English for Specific Purposes (ESP) » Business & Finance English

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Latest post Thu, Oct 12 2006 9:44 AM by Mister Micawber. 1 replies.
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Chariot  +  278944 Wed, 11 Oct 06 03:44 AM
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.
Chariot
Joined on Mon, Apr 24 2006
Full Member 345
Mister Micawber  +  279532 Thu, 12 Oct 06 09:44 AM

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
Joined on Wed, Aug 4 2004
Yokohama
Veteran Member 30,825
'The question is,' said Humpty Dumpty, 'which is to be master-- that's all.'
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