When cash dividends are paid, they are funded from the accumulated profits of the corporation (retained earnings). Thus, dividends decrease retained earnings. If net income and other 'credits' to retained earnings exceed the value of dividends paid during the period retained earnings may increase. If they do not exceed the amount of dividends paid, retained earnings likely decreases. 

What do you learn about dividends for your SEC 10-K company (Ford Motor)?

Did they issue dividends? What are the risks and opportunities of issuing dividends to shareholders each year? 

Answer rating: 100% (QA)

Based on Ford Motors SEC 10K filing for the fiscal year ended December 31 2020 we can learn about th... View the full answer