Question

The accountant for Sysco 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 Net income for the year Cash dividends declared for the year $ 819,000 230,e00 42,000 1,007,000 10,00e Retained earnings balance at the end of the year Cash dividends payable at the beginning of the year Cash dividends payable at the end of the year 11,000
What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows? Multiple Choice
$42,000.
$42.000
$43,000
$63.000.
$1,000
$41000

Answer 1

Answer:

The correct answer is $ 41,000.

Explanation:

This problem requires us to calculate the amount of cash dividend that will be reported in the financing section of the statement of cash flows. In statement of cash flow the dividend paid in cash during the period is reported. Dividend declaration in not relevant as far as statement of cash flow is concerned.

Cash dividend to reported is calculated as follow.

Dividend payable opening balance = 10,000

Divdend declared                              = 42,000

Dividend payable closing balance   = (11,000)

Dividend paid                                     = 41,000