This Question: 1 pt Tennessee Moving Company uses the indirect method to prepare

Question

This Question: 1 pt Tennessee Moving Company uses the indirect method to prepare its statement of cash f ows. Refer to the following portion of t Tennessee Company Comparative Balance Sheet December 31, 2018 and 2017 Increase 2018 2017 Decrease) Common Stock Retained Earnings Treasury Stock Total Stockholders' Equity 000 $5,000 117,00088,000 (9,000)(5,000) 88,000 $24,000 29,000 (4,000) 49,000 137,000 If the net income for the year was $66,000, the company must have declared $37,000 as dividends during the year. O True False

Explanation / Answer

Ending retained earnings=Beginning retained earnings+Net income-Dividends

117000=88000+66000-Dividends

Hence Dividends=(88000+66000-117000)=$37000

Hence the statement is True.

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