Question

# Colgate-Palmolive Company reports the following balances in its retained earnings. (\$ millions) 2010 2009 Retained earnings...

Colgate-Palmolive Company reports the following balances in its retained earnings.

(\$ millions) 2010 2009
Retained earnings \$14,329 \$13,157

During 2010, Colgate-Palmolive reported net income of \$2,222 million.

a. Assume that the only changes affecting retained earnings were net income and dividends. What amount of dividends did Colgate-Palmolive pay to its shareholders in 2010?

\$______million

b. This dividend amount constituted what percent of its net income? (Round your answer to one decimal place.)

_______%

 a) \$    1,050 Million Working: \$ in Millions Retained Earning-2009 \$       13,157 Add:Net Income \$         2,222 Less:Ratained Earning-2010 \$       14,329 Dividend paid \$         1,050 b) 47.3% Working: Dividend Percent = Dividend Paid /Net Income = \$    1,050 / \$    2,222 = 47.3%

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