The accountant for Crusoe Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: $\begin{array}{l|r}
\hline \text { Retained earnings balance at the beginning of the year } & \$ 126,000 \
\hline \text { Cash dividends declared for the year } & 46,000 \
\hline \text { Proceeds from the sale of equipment } & 81,000 \
\hline \text { Gain on the sale of equipment } & 7,000 \
\hline \text { Cash dividends payable at the beginning of the year } & 18,000 \
\hline \text { Cash dividends payable at the end of the year } & 20,000 \
\hline \text { Net income for the year } & 92,000
\end{array}$ The amount of cash dividends paid during the year would be:

Question

Quizplus · Accepted Answer

The cash dividends paid during the year can be calculated by adjusting the declared dividends for changes in dividends payable: $ \text{Cash Dividends Paid} = \text{Dividends Declared} + \text{Beginning Dividends Payable} - \text{Ending Dividends Payable} = 46,000 + 18,000 - 20,000 = 44,000 $.

The Accountant for Crusoe Company Is Preparing the Company's Statement