During the year ended 30 June 2016,March Ltd earned revenues of $1200 and incurred expenses of $800.Retained profits at 1 July 2015 were $700,and at 30 June 2016,$850.What was the dividend declared by March Ltd during the year?
A) $150
B) $250
C) $550
D) None of the answers provided

Question

Quizplus · Accepted Answer

The formula to calculate dividend is: 
Dividend = Retained Earnings at the start of the year - Retained Earnings at the end of the year + Net Income - Dividend.
Using the values given in the question:
- Retained Earnings at the start of the year = $700
- Retained Earnings at the end of the year = $850
- Net Income = Revenues - Expenses = $1200 - $800 = $400
- Dividend = ?
Substituting the values in the formula: 
Dividend = $700 - $850 + $400 - Dividend
Dividend = $250
Therefore, the dividend declared by March Ltd during the year was $250.

During the Year Ended 30 June 2016,March Ltd Earned Revenues