Use the information below for Barton Shipping Corp.for 2017 and 2018 to answer the following question:$$\begin{array} { l r }
\text { Retained earnings, December } 31,2017 & \$ 300,000 \
\text { Retained earnings, December } 31,2018 & 345,000 \
\text { Dividends payable, December } 31,2017 & 19,000 \
\text { Dividends payable, December } 31,2018 & 29,000 \
\text { Net income-2018 } & 150,000
\end{array}$$ How much cash did Barton Shipping pay for dividends during 2018?

A)$95,000
B)$105,000
C)$115,000
D)$140,000

Question

Use the information below for Barton Shipping Corp.for 2017 and 2018 to answer the following question:$$\begin{array} { l r } 
\text { Retained earnings, December } 31,2017 & \$ 300,000 \
\text { Retained earnings, December } 31,2018 & 345,000 \
\text { Dividends payable, December } 31,2017 & 19,000 \
\text { Dividends payable, December } 31,2018 & 29,000 \
\text { Net income-2018 } & 150,000
\end{array}$$ How much cash did Barton Shipping pay for dividends during 2018?

A)$95,000
B)$105,000
C)$115,000
D)$140,000

Quizplus · Accepted Answer

The change in retained earnings from 2017 to 2018 is $45,000 ($345,000 - $300,000). With a net income of $150,000, the dividends declared are $105,000 ($150,000 - $45,000). Considering the change in dividends payable ($29,000 - $19,000 = $10,000), the cash paid for dividends is $95,000 ($105,000 - $10,000).

Use the Information Below for Barton Shipping Corp How Much Cash Did Barton Shipping Pay for Dividends During