Turquoise and Topaz Sisters had retained earnings of $10,000 on the balance sheet but disclosed in the footnotes that $2,000 of

Question

2 years ago

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Turquoise and Topaz Sisters had retained earnings of $10,000 on the balance sheet but disclosed in the footnotes that $2,000 of

retained earnings was restricted for plant expansion and $1,000 was restricted for bond repayments. Cash of $2,000 had been set aside for the plant expansion. How much of retained earnings is available for dividends?
A. $8,000

B. $7,000

C. $5,000

D. $10,000

Business

1 answer:

SpyIntel [72] · Answer 1 · 2022-06-15T15:15:27+03:00

SpyIntel [72]2 years ago

3 0

$5,000 because 10,000-2,000=8,000 is left then another 2,000 taken out would leave you with 6,000 then 1,000 taken would leave you with $5,000