Given the information below about Thomas Corporation,what was the amount of dividends the company paid in the current period?
A)$13,000.
B)$110,000.
C)$28,000.
D)$18,000.

Question

Quizplus · Accepted Answer

We can find the amount of dividends paid by looking at the Retained Earnings section of the Balance Sheet. The beginning balance was $65,000, and the ending balance was $93,000. Therefore, the company had a net income of $28,000 ($93,000 - $65,000). The question specifically asks for the amount of dividends paid in the current period, so we do not need to consider any previous periods' dividend payments. Looking at the Retained Earnings statement, we see that the dividend payment for the current period is -$28,000 (a decrease in retained earnings). This means the company paid out $28,000 in dividends. Therefore, choice C is correct.

Given the Information Below About Thomas Corporation,what Was the Amount