Use This Information to Answer the Following Questions:
the Following

question 53

Multiple Choice

Use this information to answer the following questions:
The following information is taken from the financial statements of Cyrus Ltd for the year ended 30 June 2012 .
$\begin{array}{lr} & \$ \\ \text { Retained profits, 1 July 2011 } & 60,000 \\ \text { Retained profits, 30 June 2012 } & 80,000 \\ \text { Net profit before tax } & 820,000 \\ \text { Income tax expense } & 390,000 \\ \text { Final dividend payable, 1 July 2011 } & 250,000 \\ \text { Final dividend payable, 30 June 2012 } & 230,000 \\ \text { Transfer from reserves to retained profits } & 50,000\end{array}$
-What were the total dividends paid during the year?

• A) $250 000
• B) $460 000
• C) $480 000
• D) $230 000

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Definitions:

Economic Profit

The difference between total revenue and the total opportunity costs (both explicit and implicit) of all resources involved in the production of goods or services.

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, and loan payments.

Operate

To control the functioning of a machine, process, or system.

Decreasing-Cost Industry

An industry where input costs tend to fall as the industry as a whole expands its output.