Question

Yulan, Inc has beginning Retained Earnings of $35,000, ending Retained Earnings of $39,500, and net income of $21,500. What was the amount of dividends declared during the year?

a. $17,000
b. $13,500
c. $4,500
d. $21,500

Answer 1

$17,000

Step-by-step explanation:

Retained earnings is the sum of all nondistributed profits earned by a company since it begun operations. Retained earnings either increase or decrease as a result of net income or loss and dividend paid to shareholders.

Dividends paid = beginning retained earnings + Net income - ending retained earnings

$35,000 + $21,500 - $39,500 = $17,000

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