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Retained earnings at the beginning and end of the year totaled $25,000 and $75,000, respectively. Net income reported during the period was $70,000. Using this information, dividends paid will be reported as _____ on the statement of cash flows.

Respuesta :

Samawati

Answer:

$20,000

Explanation:

Retained earnings are company profits that have not been distributed as that dividends. Retained earnings plus dividends make up the net income.

Retained earnings equal to net income minus dividends paid out.

Closing retained earning = opening retained earning + income - dividends.

$75,000= $25,000 + income

Income = $75,000 -$25,000

=$50,000

Dividends will be $70,000- $50,000

=$20,000

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