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I am working on a school paper gh school accounting

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I am working on a...
I am working on a school paper for my high school accounting class.....if a c-corp has negative, unappropriated retained earnings, can that be because the stock holders have not received any dividends? Or does it mean they paid dividends to stock holders and put them in the red? This would be for a c corp with 4-6 stock holders. If neither is the case can anyone give me a auggestion as to why they would be in the negative......This is the hardest class i tell ya.
Submitted: 2 years ago.Category: Finance
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Answered in 1 hour by:
12/6/2015
Financial Professional: Taxtom, Accountant replied 2 years ago
Taxtom
Taxtom, Accountant
Category: Finance
Satisfied Customers: 2,364
Experience: 25 Years in preparing Personal and Business Tax Retuns
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This the best description I could find that describes the different possibilities

http://www.accountingtools.com/questions-and-answers/what-are-negative-retained-earnings.html

Thanks Tom

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Customer reply replied 2 years ago
I found that site already. My question is if it is howing negative, does that mean the company actually paid the share holders or is it that is what the company owes the share holders?
Financial Professional: Taxtom, Accountant replied 2 years ago

It can mean they have paid out dividends but may just represent losses over one or more years have accumulated into a negative position. In most cases the company would show bank loans or other payables that would allow them to be in this position. It is rare now for companies to actually pay dividends, even on preferred stock, when funds are unavailable though earnings. They would accumulate the dividend as a payable and pay when they return to profitability.

Thanks Tom

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