2A1E BERTRAM COMPANY HAD A BALANCE OF $100,000 IN RETAINED EARNINGS A...
8.
CSO: 2A1d
LOS: 2A1e
Bertram Company had a balance of $100,000 in Retained Earnings at the beginning of
the year and $125,000 at the end of the year. Net income for this time period was
$40,000. Bertram’s Statement of Financial Position indicated that Dividends Payable had
decreased by $5,000 throughout the year, despite the fact that both cash dividends and a
stock dividend were declared. The amount of the stock dividend was $8,000. When
preparing its Statement of Cash Flows for the year, Bertram should show Cash Paid for
Dividends as
a.
$20,000.
b.
$15,000.
c.
$12,000.
d.
$5,000.