During the year ended 30 June 2019, March Ltd earned revenues of $1 200 and incurred expenses of $800. Retained profits at 1 July 2018 were $700, and at 30 June 2019, $850. What was the dividend declared by March Ltd during the year?

Question

Quizplus · Accepted Answer

The net profit for the year is calculated as:

Revenues - Expenses = Net profit

$1 200 - $800 = $400

Retained profits at 30 June 2019 are calculated as:

Retained profits at 1 July 2018 + Net profit - Dividend = Retained profits at 30 June 2019

$700 + $400 - Dividend = $850

Dividend = $250. Therefore, the answer is B.

During the Year Ended 30 June 2019, March Ltd Earned