B&B Painting reported the following information for the year ended December 31,2013. $\begin{array}{ll}
\text { Revemues } &\$ 2,500,000 \
\text { Expenses } &2,000,000 \
\text { Retained Earnings at December 31, 2012 } &100,000 \
\text { Retained Earnings at December 31, 2013 } &450,000
\end{array}$
-How much was paid out in dividends in 2013?

Question

B&B Painting reported the following information for the year ended December 31,2013. $\begin{array}{ll}
 \text { Revemues } &\$ 2,500,000 \
 \text { Expenses } &2,000,000 \
 \text { Retained Earnings at December 31, 2012 } &100,000 \
 \text { Retained Earnings at December 31, 2013 } &450,000
\end{array}$ 
-How much was paid out in dividends in 2013?

Quizplus · Accepted Answer

The net income for 2013 is $500,000 ($2,500,000 revenues - $2,000,000 expenses). The change in retained earnings is $350,000 ($450,000 - $100,000). Therefore, dividends paid out are $150,000 ($500,000 net income - $350,000 change in retained earnings).

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