Use the information given below to answer the following questions:
On 30 June 2011, Easter Ltd declared a final dividend. During the year ended 30 June 2012, Easter Ltd earned revenues of $1200 and incurred expenses of $800. Retained profits at 1 July 2011 were $700, and at 30 June 2012, $850. At 30 June 2012, assets totalled $2800 and share capital $1500. There were no transfers to reserves during the year ended 30 June 2012.
-What was the dividend declared by Easter Ltd during the year?
A) $150
B) $250
C) $550
D) this cannot be determined from the above information.

Question

Quizplus · Accepted Answer

To find the dividend declared by Easter Ltd during the year, we need to calculate the change in retained profits: 
Retained profits at 1 July 2011 = $700 
Add: Net profit for the year = $1200 - $800 = $400 
Less: Retained profits at 30 June 2012 = $850 
Change in retained profits = ($700 + $400) - $850 = $250 
Therefore, the dividend declared by Easter Ltd during the year was $250 (Option B).

Use the Information Given Below to Answer the Following Questions