Taylor Chemicals Company Follows the Indirect Method to Prepare Its

question 33

Multiple Choice

Taylor Chemicals Company follows the indirect method to prepare its statement of cash flows.Refer to the following portion of the comparative balance sheet: $\begin{array}{c}\text { Taylor Company}\\\text { Comparative Balance Sheet}\\\text { December 31,2017 and 2016}\\\begin{array}{|l|r|r|r|}\hline&2016 & 2015 & \text { Increase/(Decrease) }\\\hline \text { Common Stock } & \$ 34,000 & \$ 2,100 & \$ 31,900 \\\hline \text { Retained Earnings } & 156,000 & 94,000 & 62,000 \\\hline \text { Treasury Stock } & (\underline{8,300} ) & (5,200) & \underline{(3,100) } \\\hline \text { Total Equity } & \$ 181,700 & \$ 90,900 & \$ 90,800 \\\hline\end{array}\end{array}$ Net Income for the year was $89,000.
Based on the above information,determine the amount of dividends declared during 2016.

• A)$3,100
• B)$89,000
• C)$62,000
• D)$27,000