Taylor Chemicals Company follows the indirect method to prepare its statement of cash flows.Refer to the following portion of the comparative balance sheet:
-Note: Net Income for the year was $89,000.
Based on the above information,calculate the dividends declared during the year 2014.

Question

Taylor Chemicals Company follows the indirect method to prepare its statement of cash flows.Refer to the following portion of the comparative balance sheet:  
-Note: Net Income for the year was $89,000.
Based on the above information,calculate the dividends declared during the year 2014.

Quizplus · Accepted Answer

The dividends declared during the year can be calculated by subtracting the net income from the total change in retained earnings. If the net income is $89,000 and the dividends declared are $24,000, it implies that the remaining $65,000 was retained in the business.

Taylor Chemicals Company Follows the Indirect Method to Prepare Its