Beginning retained earnings was $34,400. Ending retained earnings was $61,600 and net income was $36,000. Cash paid as dividends was:
A) $36,000
B) $8,800
C) $1,200
D) $30,000

Question

Quizplus · Accepted Answer

The change in retained earnings is the net income minus dividends. The change is $61,600 - $34,400 = $27,200. Since net income is $36,000, dividends paid must be $36,000 - $27,200 = $8,800.

Beginning Retained Earnings Was $34,400