How much of retained earnings is available for dividends

Reference no: EM13133042

Hutchinson Company had retained earnings of $10,000 on the balance sheet but disclosed in the footnotes that $2,000 of retained earnings was restricted for plant expansion and $1,000 was restricted for bond repayments. Cash of $2,000 had been set aside for the plant expansion. How much of retained earnings is available for dividends?

a)$10,000.

b)$5,000.

c)$7,000.

d)$8,000

Reference no: EM13133042

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