Question

question content area cash dividends of $84,166 were declared during the year. cash dividends payable were $10,081 at the beginning of the year and $13,490 at the end of the year. the amount of cash paid for dividends during the year is

Answer 1

The amount of cash paid for dividends during the year is calculated by taking the cash dividends declared ($84,166) and adjusting it by the increase in dividends payable from the beginning to the end of the year. The calculation results in $80,757 being paid in cash for dividends.

Step-by-step explanation:

To determine the amount of cash paid for dividends during the year, we will need to account for the declared dividends and the changes in dividends payable. We start with the declared dividends and adjust for any increase or decrease in dividends payable.

Here is the calculation:

• Cash Dividends Declared: $84,166
• Dividends Payable at the Beginning of the Year: $10,081
• Dividends Payable at the End of the Year: $13,490

To find the cash paid for dividends, we subtract the dividends payable at the beginning of the year from the declared dividends and then subtract the increase in dividends payable by the end of the year.

Cash Paid for Dividends = Cash Dividends Declared - (Dividends Payable at the End of the Year - Dividends Payable at the Beginning of the Year)

Cash Paid for Dividends = $84,166 - ($13,490 - $10,081)

Cash Paid for Dividends = $84,166 - $3,409

Cash Paid for Dividends = $80,757

Therefore, the amount of cash paid for dividends during the year is $80,757.