B&B Painting
The company reported the following information for the year ended December 31, Year 2:
$$\begin{array} { l r }
\text { Revenues } & \$ 2,500,000 \
\text { Expenses } & 2,000,000 \
\text { Retained earnings at December 31, Year 1 } & 100,000 \
\text { Retained earnings at December 31, Year } 2 & 450,000
\end{array}$$
-Refer to the figure B&B Painting .How much was paid out in dividends in Year 2?

Question

B&B Painting
The company reported the following information for the year ended December 31, Year 2:
 $$\begin{array} { l r } 
\text { Revenues } & \$ 2,500,000 \
\text { Expenses } & 2,000,000 \
\text { Retained earnings at December 31, Year 1 } & 100,000 \
\text { Retained earnings at December 31, Year } 2 & 450,000
\end{array}$$
-Refer to the figure B&B Painting .How much was paid out in dividends in Year 2?

Quizplus · Accepted Answer

Retained earnings increased by $350,000 ($450,000 - $100,000). Since net income was $500,000 ($2,500,000 - $2,000,000), dividends must have been $150,000 ($500,000 - $350,000).

B&B Painting the Company Reported the Following Information for the Year

B&B Painting
the Company Reported the Following Information for the Year