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shtirl [24]
3 years ago
10

Car and Auto Sisters had retained earnings of $18,000 on the balance sheet but disclosed in the footnotes that $3,000 of retaine

d 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? $14,000 $15,000 $18,000 $12,000
Business
1 answer:
zmey [24]3 years ago
8 0

Answer:

$14,000

Explanation:

The computation the retained earning balance for dividend distribution is shown below:

= Retained earnings - retained earnings was restricted for plant expansion - restricted for bond repayments

= $18,000 - $3,000 - $1,000

= $14,000

Simply we deduct those items which affect the retained earnings balance.  

All other information which is given is not relevant. Hence, ignored it

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Answer:

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8 0
1 year ago
Hershey has traditionally made its Kisses from solid milk chocolate. When Hershey came out with Kisses with almonds in them, thi
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2 years ago
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3 years ago
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