The balance sheets of Red Wine Ltd show:
30 June
2015 2016
Final Dividend Payable $11 000 $15 000
In addition to the information above,an interim dividend of $5000 was declared and paid on 31 January 2016.What amount in respect of dividends will appear in the statement of cash flows for the year ended 30 June 2016?

Question

Quizplus · Accepted Answer

The amount to be shown in the statement of cash flows for the year ended 30 June 2016 is the total dividends paid for the year, which is the final dividend payable ($15,000) plus the interim dividend paid ($5,000) for a total of $20,000. However, since the final dividend payable was already included in the balance sheet, only the additional amount of the interim dividend paid needs to be added, which is $16,000 ($15,000 + $5,000 - $11,000). Therefore, the correct answer is C.

The Balance Sheets of Red Wine Ltd Show