The board of directors declared cash dividends totaling $364,000 during the current year. The comparative balance sheet indicates dividends payable of $104,300 at the beginning of the year and $91,000 at the end of the year. What was the amount of cash payments to stockholders during the year?
Answer:
Dividends declared…………………………………………………………………………… $364,000
Add decrease in dividends payable………………………………………………………… 13,300
Dividends paid to stockholders during the year………………………………………… $377,300
An analysis of the general ledger accounts indicates that delivery equipment, which cost $80,000 and on which accumulated depreciation totaled $36,000 on the date of sale, was sold for $37,200 during the year. Using this information, indicate the items to be reported on the statement of cash flows.
Answer:
Cash flows from investing activities:
Cash received from sale of equipment…………………………………………… $37,200
The loss on the sale, $6,800 ($37,200 proceeds from sale less $44,000 book
value), would be added to net income in determining the cash flows from
operating activities if the indirect method of reporting cash flows from
operations is used.
Answer:
Dividends declared…………………………………………………………………………… $364,000
Add decrease in dividends payable………………………………………………………… 13,300
Dividends paid to stockholders during the year………………………………………… $377,300
An analysis of the general ledger accounts indicates that delivery equipment, which cost $80,000 and on which accumulated depreciation totaled $36,000 on the date of sale, was sold for $37,200 during the year. Using this information, indicate the items to be reported on the statement of cash flows.
Answer:
Cash flows from investing activities:
Cash received from sale of equipment…………………………………………… $37,200
The loss on the sale, $6,800 ($37,200 proceeds from sale less $44,000 book
value), would be added to net income in determining the cash flows from
operating activities if the indirect method of reporting cash flows from
operations is used.
