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:

Control Center

A central part of a system, such as the brain in the human body, that regulates the body's responses to stimuli and maintains homeostasis.

Pancreas

The pancreas is a glandular organ in the digestive and endocrine system that produces enzymes and hormones, including insulin, to regulate blood sugar levels.

Esophagus

The muscular tube that carries food and liquids from the throat to the stomach.