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 $ 1,069,000
Net income for the year 355,000
Cash dividends declared for the year 67,000
Retained earnings balance at the end of the year 1,757,000
Cash dividends payable at the beginning of the year 15,000
Cash dividends payable at the end of the year 18,500
What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows?
a) $100,500.
b) $3,500.
c) $63,500.
d) $70,500.
e) $67,000.

Answer 1

C. $63,500

Step-by-step explanation:

With regards to the above, information, the amount of cash dividends paid that should be recorded is computed as;

= Cash dividends payable at the beginning of the year + Cash dividends declared for the year - Cash dividends payable at the end of the year

= $15,000 + $67,000 - $18,500

= $63,500

Therefore, cash dividends paid that should be recorded in the financing section of the statement of cash flow is $63,500