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.