Use the Information Below for Focal Point Corp ? Assume That There Were No Retained Earnings Transactions Other

question 48

Multiple Choice

Use the information below for Focal Point Corp.for 2016 and 2017 to answer the following question. $\begin{array}{lr}\text { Retained earnings, December } 31,2016 & \$ 300,000 \\\text { Retained earnings, December } 31,2017 & 345,000 \\\text { Dividends payable, December } 31,2016 & 19,000 \\\text { Dividends payable, December } 31,2017 & 29,000 \\\text { Net income-2017 } & 150,000\end{array}$ ? Assume that there were no retained earnings transactions other than those dealing with dividends and net income.How much dividends did Focal Point declare during 2017?

• A) $95,000
• B) $105,000
• C) $140,000
• D) $150,000

---

Definitions:

Factor Endowments

The quantities of various resources a country possesses, which can affect its comparative advantage in international trade.

Free-Trade Theories

Economic theories advocating for the elimination of barriers to the exchange of goods and services between nations, to encourage trade and economic growth.

Mercantilism

A trade theory which suggests that trade generates wealth for a country with a trade surplus, with emphasis on colonization and military conquest.

Interventionist Trade Theory

A theory suggesting that government intervention in international trade through policies and regulations is necessary to correct market failures and protect domestic industries.