Given the Information Below About David Corporation, What Was the Amount

question 164

Multiple Choice

Given the information below about David Corporation, what was the amount of dividends the company paid in the current period? $$\begin{array} { | l | l | } \hline \text { Beginning retained earnings } & \$ 35,000 \\\hline \text { Ending retained earnings } & \$ 90,000 \\\hline \text { Increase in cash } & \$ 25,000 \\\hline \text { Net income } & \$ 85,000 \\\hline \text { Change in stockholders' equity } & \$ 20,000 \\\hline\end{array}$$

• A) $140,000.
• B) $0.
• C) $30,000.
• D) $20,000.

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Definitions:

Disposable Income

Financial avenues open to households for spending and saving, post income tax deductions.

MPS

Marginal Propensity to Save, which is the fraction of additional income that a household saves rather than spends on consumption.

Saving

The act of setting aside a portion of current income for future use, typically to achieve financial goals or provide a safety net.

APS

Advanced Planning and Scheduling is a system that integrates production planning and shop floor scheduling, improving manufacturing efficiency.