contestada

A firm's year-end retained earnings balances are $320,000 and $400,000, for 2014 and 2015 respectively. The firm reported net profits after taxes of $ 100,000 in 2015. The firm's dividend payment for 2015 is_____

a) $100,000
b) $20,000
c) $0
d) $80,000

Respuesta :

hyderali230

Answer:

b) $20,000

Explanation:

Retained Earning ending balance of 2015 = Opening balance of 2015 + Profit for the year 2015 - Dividend Paid during 2015

$400,000 = $320,000 + $100,000 - Dividend Paid during 2015

$400,000 = $420,000 - Dividend Paid during 2015

Dividend Paid during 2015 = $420,000 - $400,000

Dividend Paid during 2015 = $20,000

The firm's dividend payment for 2015 is $20,000.

Otras preguntas