Question

wifi around inc reports net income for the year of 220,000. retained earnings at the beginning and end of the year are 810,000 and 930,000 respectively. what is the cash paid for dividends during the year?

Answer 1

Answer:

$100,000

Explanation:

The computation of the cash dividend paid is shown below:

We know that

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

$930,000 = $810,000 + $220,000 - dividend paid

$930,000 = $1,030,000 - dividend paid

So, the dividend would be

= $1,030,000 - $930,000

= $100,000