Ridge Crest Co. has beginning Retained Earnings of $11,000, ending Retained Earnings of $16,000, and net income of $7,500. What was the amount of dividends declared during the year?

$2500

Explanation:

Retained earning are undistributed profits. Together with dividends, retained earning form the income of a company.

At Ridge Crest Co.

Beginning retained earnings = $11,000,

Ending retained earnings= $ 16,000

Retained earnings for the year = $5000,( $16,000 -$11,000)

Ridge Crest Co. had an income of $7,500

Retained earnings of $5000,

Dividends ??

Income = retained earnings + Dividend

$7500=  $5000 + Dividends

Dividends = $7500 -$5000

Dividends = $2500

mauve company permits employees to occasionally use the copying machine for personal purposes