Exam 01 (ch 1-4) 2018-9- Requires Respondus LockDown Browser Started: Sep 23 at

Question

Exam 01 (ch 1-4) 2018-9- Requires Respondus LockDown Browser Started: Sep 23 at 5:49pm Quiz Instructions Question @ Ques Ques @ Quest Quest Questi Questi Questi Questi 4 pts Question 1 Ruff-Cuts, Inc. had net profits after tax of $150 in 2003 and $120 in 2002. The frm's balance sheets show balances of $600 in retained earnings at the end of 2003, and $500 in retained earnings at the end of 2002. Common stock dividends paid in 2003 amounted to Time Running: Attempt due: Sep 23 1 Hour, 50 Minut o $150 O s50 $600 $100 Next Submit Quiz No

Explanation / Answer

Correct answer is option B.50

Calculation of Common stock dividend

Additions to Retained earnings in 2003=600-500=100

Total Net profit of 2003=150

So Dividend = Net profit - Transfer to Retained earnigs

=150-100

=50

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