Colonial Furniture's Net Profits Before Taxes for 2002 Totaled $354,000

question 133

Essay

Colonial Furniture's net profits before taxes for 2002 totaled $354,000. The company's total retained earnings were $338,000 for 2004 year end and $389,000 for 2005 year end. Colonial is subject to a 26 percent tax rate. How large was the cash dividend declared by Colonial Furniture in 2005?

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Definitions:

Friedel-Crafts Acylation

A chemical reaction that introduces an acyl group into an aromatic ring, facilitated by a Lewis acid catalyst.

Polyacylation

Polyacylation is a chemical process involving the repeated addition of acyl groups to a compound, typically used in organic synthesis to modify the properties of chemicals.

Resonance Form

An alternative structure of a molecule or ion that differs only in the distribution of electrons, equivalent to a resonance structure.

Directing Effect

Describes how substituents on an aromatic ring influence the position of additional substituents in electrophilic aromatic substitution reactions.