Question $2$

$2\mathrm{.}5pts$

The Year $2$ statement of cash flows of Dickens Corporation shows $$500,000$ cash paid for dividends. If dividends in Dickens' statement of retained earnings are reported at $$550,000$ then:

Dickens' dividends payable account must have increased by $$50,000$ in Year $2.$

Dickens' Cash account must have increased by $$50,000$ in Year $2.$

Dickens' dividends payable account must amount to $$50,000$ at the end of Year $2.$

Dickens' dividends payable account must have decreased by $$50,000$ in Year $2.$