Bridgewater Furniture has sales of $811,000,costs of $658,000,and interest paid of $21,800.The depreciation expense is $56,100 and the tax rate is 34 percent.At the beginning of the year,the firm had retained earnings of $318,300 and common stock of $250,000.At the end of the year,the firm has retained earnings of $322,500 and common stock of $280,000.What is the amount of the dividends paid for the year?

Question

Quizplus · Accepted Answer

Dividends paid = [($811,000 - $658,000 - $56,100 - $21,800)(1 - 0.34)] - ($322,500 - $318,300) = $45,366

Bridgewater Furniture Has Sales of $811,000,costs of $658,000,and Interest Paid