Question

Marshland Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Cash dividends declared for the year $ 40,000 Cash dividends payable at the beginning of the year 17,000 Cash dividends payable at the end of the year 13,000 The amount of cash paid for dividends was: A. $36,000. B. $53,000. C. $40,000. D. $44,000. E. $57,000.

Answer 1

Answer: $44,000

Explanation:

The following information can be gotten from the question:

Cash dividends declared for the year = $40,000

Cash dividends payable at the beginning of the year = $17,000

Cash dividends payable at the end of the year = $13,000

Therefore, the amount of cash paid for dividends was:

= $40,000 + $17,000 - $13,000

= $57,000 - $13,000

= $44,000