Question: Question Content Area Retained Earnings Statement On January 1 , Sherwood Company had retained earnings of $ 1 8 , 2 7 0 . During

Question Content Area
Retained Earnings Statement
On January 1, Sherwood Company had retained earnings of $18,270. During the year, Sherwood had revenues of $837,400 and expenses of $792,000, and paid cash dividends in the amount of $38,680.
Required:
1.Determine the amount of Sherwoods retained earnings at December 31.
$fill in the blank 1
2.Conceptual Connection: Comment on Sherwood's dividend policy.
Sherwood is paying
5%61%85%89%85%
of its income to its shareholders in the form of dividends. This
largesmalllarge
dividend payout will result in investors receiving relatively more of the companys earnings in
the form of cashthe form of share appreciationthe form of cash
during the year.

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