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Compute the cash paid for dividends

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Question: The following selected information is from the Teeter Company's comparative balance sheets.

At December 31                                          2011             2010

Common stock, $10 par value . . . . . . . . . $ 310,000        $300,000

Paid-in capital in excess of par . . . . . . . . . 1,134,000       684,000

Retained earnings . . . . . . . . . . . . . . . . . . . 627,000       575,000

The company's net income for the year ended December 31, 2011, was $196,000.

1. Compute the cash received from the sale of its common stock during 2011.

2. Compute the cash paid for dividends during 2011.

Reference no: EM131535694

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