The amount of cash paid for dividends for the current year can be calculated by the following formula:

Question

Quizplus · Accepted Answer

The formula for calculating the amount of cash paid for dividends for the current year is beginning dividends payable minus ending dividends payable plus dividends declared. This is because the beginning dividends payable represents the dividends declared but not yet paid from the previous year, and the ending dividends payable represents the dividends declared in the current year but not yet paid. By subtracting the ending dividends payable from the beginning dividends payable, we get the total dividends declared for the year. Adding this to the dividends declared in the current year gives us the total amount of cash paid for dividends for the current year.

The Amount of Cash Paid for Dividends for the Current