Question

The accountant for Crusoe Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year$126,000Cash dividends declared for the year 46,000Proceeds from the sale of equipment 81,000Gain on the sale of equipment 7,000Cash dividends payable at the beginning of the year 18,000Cash dividends payable at the end of the year 20,000Net income for the year 92,000The amount of cash dividends paid during the year would be:Multiple Choice$48,000.$46,000.$64,000.$44,000.$8,000.

Answer 1

Answer:

The amount of cash dividends paid during the year would be $44,000

Explanation:

Dividend : It is the amount which is paid to the shareholders at the company announcement. It is paid according to the number of shares allotted by the shareholders.

The cash dividend paid during the year is calculating  by using an equation which is displayed below:

= Opening cash dividend payable + cash dividend declared - closing cash dividend payable

= $18,000 + $46,000 - $20,000

= $44,000

Thus, The amount of cash dividends paid during the year would be $44,000

Others amounts are irrelevant while calculating the dividend paid for a particular year.