The following information for 2018 was presented by Zola Company who uses the indirect method to prepare its statement of cash flows: • Retained earnings, beginning balance: $125,000 • Retained earnings, ending balance: $117,000 Company reported net loss of $6,000 for the year. Which of the following figure is the correct dividends paid during the year? Question 9Answer a. $2,000 b. $3,000 c. $5,000 d. Zero

The following information for 2018 was presented by Zola Company who uses the indirect method to prepare its statement of cash flows: • Retained earnings, beginning balance: $125,000 • Retained earnings, ending balance: $117,000 Company reported net loss of $6,000 for the year. Which of the following figure is the correct dividends paid during the year? Question 9Answer a. $2,000 b. $3,000 c. $5,000 d. Zero

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 47E

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Question

The following information for 2018 was presented by Zola Company who uses the indirect method to prepare its statement of cash flows:

• Retained earnings, beginning balance: $125,000

• Retained earnings, ending balance: $117,000

Company reported net loss of $6,000 for the year.

Which of the following figure is the correct dividends paid during the year?

Question 9Answer

$2,000

$3,000

$5,000

Zero

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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