Final answer:
Kendall Co. made cash payments totaling $405,000 to stockholders for dividends during the year, calculated by the declared cash dividends minus the beginning dividends payable plus the ending dividends payable.
Step-by-step explanation:
To determine the amount of cash payments Kendall Co. paid to stockholders for dividends, we can use the information about declared dividends and changes in the dividends payable account from their balance sheet. The company declared cash dividends totaling $390,000 this year. We also have information about the dividends payable: $58,000 at the beginning of the year and $73,000 at the end. To calculate the actual cash payments made to shareholders, we subtract the dividends payable at the beginning of the year from the declared dividends and then add the dividends payable at the end of the year.
The formula is: Cash Payments for Dividends = Declared Dividends - Dividends Payable (beginning of year) + Dividends Payable (end of year).
By substituting the given values into the formula, we get the following calculation:
Cash Payments for Dividends = $390,000 - $58,000 + $73,000
The total cash payments made to stockholders during the year would therefore be: $390,000 - $58,000 + $73,000 = $405,000.