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

question 28

Multiple Choice

The following information was drawn from the year-end balance sheets of White,Inc. $$\begin{array} { l r r } & \text { Year } 2 & \text { Year } 1 \\ \text { Bonds payable }& \$ 200,000 & \$275,000 \\\text { Common stock } & 112,500 & 87,500 \\\text { Treasury stock } & 17,500 & 12,500 \\\text { Retained earnings }& 35,000 & 27,500\end{array}$$ The amount of net income shown on the 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?