The Following Amounts Were Provided by Brighthouse Lighting for the 2014

question 84

Multiple Choice

The following amounts were provided by Brighthouse Lighting for the 2014: $$\begin{array} { l r } \text { Beginning retained earnings } & \$ 650,000 \\\text { Ending retained earnings } & 630,000 \\\text { Cash provided by operations } & 2,240,000 \\\text { Net income for } 2014 & 2,160,000\end{array}$$ How much will Brighthouse report on it statement of cash flows for 'dividends paid' during 2014?

• A) $2,260,000
• B) $2,180,000
• C) $2,810,000
• D) $2,140,000

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Definitions:

Diminishing Marginal Returns

A principle in economics where each additional unit of input results in a smaller increase in output after a certain point, common in production processes.

Total Revenues

The sum of all earnings or income generated by a business or entity from its operations, before any deductions or expenses are taken into account.

Forgone Entrepreneurial Income

The potential earnings that an entrepreneur sacrifices by choosing to operate their business instead of working elsewhere for a salary.