The following table gives the information for Haywood Foods. The company current

Question

The following table gives the information for Haywood Foods. The company currently pays out 20% of net income as dividends to stockholders. Answer Questions 2 – 23.

What is the amount of dividend paid in 2014?

$231

$163

$248

$187

2014 2015 Cost of Goods Sold $3,670 $4,109 Cash 250 313 Depreciation 125 122 Interest Expense 291 280 Current Liabilities 717 1,051 Net Fixed Assests 4,006 4,123 Sales 5,831 6,423 Accounts Receivable 1,092 1,162 Long-term Debt 2,400 1,100 Inventory 1,495 1,521 New Equity 0 250 Taxes 590 672

Explanation / Answer

Net Income= sales-cogs-dep-interest-taxes
=6423-4109-122-280-672
=1240
Dividend paid=20% of net income
=.2*1240=$248
Option C

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