Allen Company Uses the Indirect Method to Prepare Its Statement $\quad$

Allen Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Allen Company
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Comparative Balance Sheet
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ December 31, 2015 and 2014
$\begin{array}{lrrr} & 2015 & 2014 & \text { Increase/decrease } \\\text { Common Stock } & \$ 28,000 & \$ 5,000 & \$ 23,000 \\\text { Retained Earnings } & 108,000 & 82,000 & 26,000 \\\text { Treasury Stock } & (9,000) & (6,000) & (3,000) \\ \text { Total equity } & 127,000 & 81,000 & 46,000 \\\hline\end{array}$ If the net income for the year was $58,000, the company must have declared $32,000 as dividends during the year.