Salah’s net income for the year ended December 31, Year 2 was $197,000. Information from Salah’s comparative balance sheets is given below.

At December 31	Year 2			Year 1
Common Stock, $5 par value	$	512,000		$	460,800
Paid-in capital in excess of par		960,000			863,800
Retained earnings		700,000			592,800

Compute the cash paid for dividends during Year 2.

Answer rating: 100% (QA)

To compute the cash paid for dividends during Year 2 we need to consider the c... View the full answer