For the year, Uptowne Furniture had sales of $818,790, costs of $748,330, and interest paid of $24,450. The depreciation expense was $56,100 and the tax rate was 34 percent. At the beginning of the year, the firm had retained earnings of $172,270 and common stock of $260,000. At the end of the year, retained earnings was $158,713 and common stock was $280,000. Any tax losses can be used. What is the amount of the dividends paid for the year?

A. $6,466

B. $7,566

C. $5,266

D. $6,898

E. $7,066

Answer rating: 100% (QA)

Solution Answer is D 6898 Working Notes Calculation of Net Income Sales 818790 less Cost 748330 les... View the full answer