Question

Use the following information to calculate cash received from dividends: Dividends revenue $ 32,300 Dividends receivable, January 1 3,100 Dividends receivable, December 31 4,400 Multiple Choice $27,900. $31,000. $35,400. $32,300. $33,600.

Answer 1

Answer:

$31,000

Explanation:

Calculation for the cash received from Dividend

Beginning dividends receivable + Dividend revenue - dividends paid = Ending dividends receivable

Hence,

Using this formula

Dividends paid = Beginging dividends receivable + dividend revenue - Ending dividends receivable

Let plug in the formula

= 3,100+32,300-4,400

=31,000

Therefore the amount of cash received from dividend will be $31,000.

Thus the dividend revenue is not the dividends which was received in cash, but instead it is the dividends which was earned during the period.