g Mickey Company provided the following information for the year 2020: Retained earnings, beginning balance: $125,000 Retained earnings, ending balance: $147,000 Dividends Payable, beginning balance: $95,000 Dividends Payable, ending balance: $84,000 If Mickey Company reported a net income of $78,000 for the year, what was the amount of dividends paid during the year

$56,000

Explanation:

Ending Retained Earnings = Opening Retained Earnings + Net Income - Dividends

therefore,

Dividend = Opening Retained Earnings + Net Income - Ending Retained Earnings

thus

Dividend = $56,000

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