Boston Recyclers Company uses the indirect method to prepare its statement of cash flows. Refer to the following information for 2019: 1. Retained Earnings, beginning balance, $139,000
2. Retained Earnings, ending balance, $120,000
3. There is a net loss of $15,000 for the year.
What is the amount of dividends declared during the year?

$4,000

Explanation:

We will use the formulae below to get the amount of dividend the declared during the year

Ending retained earnings = Beginning retained earnings - Net loss - Dividends declared

$120,000 = $139,000 - $15,000 - Dividends declared

$120,000 = $124,000 - Dividend declared

Dividend declared = $124,000 - $120,000

Dividend declared = $4,000

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explanation: