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A firm's year-end retained earnings balance are $670,000 and $550,000 for 2018 and 2017, respectively. The firm reported net profits after taxes of $100,000 in 2018. The firm paid dividends of ________ in 2018.
A. $100,000
B. $110,000
C. $210,000
D. $220,000

Respuesta :

abiolataiwo2015

Answer:

C. $210,000

Explanation:

Calculation for amount the firm paid dividends in 2018

Using this formula

Dividend= Retained Earnings beginning balance + Profit after taxes - Retained Earnings ending balance

Let plug in the formula

Dividend= $670,000 + $100,000 -$560,000

Dividend= $210,000

Therefore the firm paid dividends of $210,000 in 2018