Respuesta :
Answer:
$86,200
Explanation:
Given:
Net income for the second year = $193,000
Retained earning for the year 1 = 589,200
Retained earning for the year 2 = 696,000
Common Stock, $5 par value for the year 1 = $ 457,200
Common Stock, $5 par value for the year 2 = $ 508,000
Paid-in capital in excess of par for the year 1 = 860,200
Paid-in capital in excess of par for the year 2 = 956,000
Now,
the cash paid for the dividend during year 2 will be calculated as:
⇒ Cash paid dividend during 2 year = Difference in retained earnings - Net income for second year
also,
Difference in retained earnings = Retained earning for the year 2 – Retained earning for the year 1
or
⇒ 696,000 – 589,200
or
Difference in retained earnings = $106,800
thus, substituting the values, we get
Cash paid dividend during 2 year = $106,800 - $193,000
or
Cash paid dividend during 2 year = - $86,200 (negative answer depicts the cash paid)
hence,
Cash paid dividend during 2 year is $86,200
Answer:
The cash paid for dividends during Year 2 is $86,200
Explanation:
For computing how much cash is paid for dividend during a year, first we have to compute the difference of retained earning. After that subtract the above balance from the second year net income amount.
In mathematically,
1. Difference in retained earnings = Year 2 balance - Year 1 balance
= $696,000 - $589,200
= $106,800
Now, cash dividend is equals to
= Year 2 net income - Difference in retained earnings -
= $193,000 - $106,800
= $86,200
Hence, the cash paid for dividends during Year 2 is $86,200
