The net income of edwards corporation amounted to $74,000 for this year. the beginning balance ofâ stockholders' equity was $31,000 and the ending balance was $72,000. the company issued no common stock during the year. what was the amount of dividends distributed during theâ year?

We can calculate the dividends issued by adding the beginning inventory and the net income less the ending inventory. Thus,

dividends = net income+beginning inventory-ending inventory

where

net income=$74,000

beginning inventory=$31,000

ending inventory = $72,000

substituting the values, we wil get

dividends=$33,000

Edwards corporation will issue dividends amounting to $33,000.