Question

The accountant for Mandarin 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 $ 969,000 Net income for the year 305,000 Cash dividends declared for the year 57,000 Retained earnings balance at the end of the year 1,457,000 Cash dividends payable at the beginning of the year 13,000 Cash dividends payable at the end of the year 15,500 What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows

Answer 1

Answer:

The amount of cash dividends paid that should be reported in the financing section of the statement of cash flows = $ 54,500

Explanation:

The amount of cash dividends paid that should be reported in the financing section of the statement of cash flows = $ 54,500

Dividends  payable  a/c

Particulars           Amount                Particulars                    Amount

                                                             Balance b/d                 $ 13,000

Dividend paid (Cash)  $ 54,500 Dividend declared            $57,000

Balance c/d               $ 15,500

                                     $ 70,000                                             $ 70,000

Therfore, The amount of cash dividends paid that should be reported in the financing section of the statement of cash flows = $ 54,500