Reference no: EM132986158
Question - DeBauge Realtors Inc. is a realty firm owned by Jeff and Kristi DeBauge. The DeBauge family owns 100% of the corporation's stock. The following summarized data (in thousands) are taken from the December 31, 2019, financial statements:
For the Year Ended December 31, 2019:
Commissions revenue $143
Cost of services provided 59
Advertising expense 31
Operating income $53
Interest expense 4
Income tax expense 16
Net income $33
At December 31, 2019: Assets
Cash and short-term investments $32
Accounts receivable, net 43
Property, plant, and equipment, net 123
Total assets $198
Liabilities and Stockholders' Equity
Accounts payable $92
Income taxes payable 10
Notes payable (long term) 47
Paid-in capital 24
Retained earnings 25
Total liabilities and stockholders' equity $198.
At December 31, 2018, total assets were $202 and total stockholders' equity was $49. There were no changes in notes payable or paid-in capital during 2019.
Required - Calculate the amount of dividends declared and paid to Jeff and Kristi DeBauge during the year ended December 31, 2019. What proportion of the company's earnings are distributed as dividends?