Remember the basic accounting equation:
Assets = Liabilities + Equity
so if if total assets decreased by $60,000 and total liabilities decreased by $300,000, that means that equity increased by $240,000.
company issued $100,000 of new stock – equity increased by $100,000
net income for the year was $250,000 – equity increased by $250,000
That makes a total increase of $350,000
but you know equity increased by only $240,000, so dividends of $110,000 must have been declared.
Remember the basic accounting equation:
Assets = Liabilities + Equity
so if if total assets decreased by $60,000 and total liabilities decreased by $300,000, that means that equity increased by $240,000.
company issued $100,000 of new stock – equity increased by $100,000
net income for the year was $250,000 – equity increased by $250,000
That makes a total increase of $350,000
but you know equity increased by only $240,000, so dividends of $110,000 must have been declared.