Question

Citi Compary 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 Cash dividends payable at the beginning of the year Cash dividends payable at the end of the year $40,000 17,g00 13,000 The amount of cash paid for dividends was_____________.b. $40,000c. $57000d. $53.000e. $36,000

Answer 1

Answer:

There appears to be a missing option A,of $44,000, which is correct option

The amount of cash dividends paid is $44,000 as shown below

Explanation:

The cash dividends paid in the year can be summarized below:

Cash dividends outstanding at the beginning of the year        $17,000

Cash dividends declared during the year                                   $40,000

less cash dividends outstanding at the end of the year            ($13,000)

Amount of cash dividends paid during the year                         $44,000

It expected that the dividends payable at the beginning of the year is given precedence over dividends outstanding at the end of year when it comes to making payment,hence the reason the earlier one is added to the cash dividends declared in the year and the later one taken out.