The Following Information Was Drawn from the Year-End Balance Sheets

question 117

Multiple Choice

The following information was drawn from the year-end balance sheets of White,Inc. $\begin{array}{l}\begin{array}{|l}\hline\\\hline \text { Bonds payable}\\\hline \text {Common stock}\\\hline \text {Treasury stock}\\\hline \text {Retained earnings}\\\hline\end{array}\begin{array}{|l}\hline 2014 \\\hline \$ 200,000 \\\hline 112,500 \\\hline 17,500 \\\hline 35,000 \\\hline\end{array}\begin{array}{|l|}\hline 2013 \\\hline \$ 275,000 \\\hline 87,500 \\\hline 12,500 \\\hline 27,500 \\\hline\end{array}\end{array}$ The amount of net income shown on the 2014 Year 2 income statement was $17,500.There was no beginning or ending balance in the Dividends Payable account.What is the amount of cash outflows for dividends?

• A) $7,500
• B) $25,000
• C) $17,500
• D) $10,000

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Definitions:

Net Exports

The surplus or deficit resulting from a country's international trade, calculated as exports minus imports.

Foreign Direct Investment

Foreign Direct Investment (FDI) involves an investment made by a firm or individual in one country into business interests located in another country.

U.S. Imports

Goods and services purchased by residents of the United States from other countries.

U.S. Exports

Goods and services produced in the United States that are sold to other countries.