A company uses the indirect method to prepare the statement of cash flows. The board of directors
declared dividends on common stock of $165,000 during the year. Dividends payable were $48,000 at the
beginning of the year and $44,000 at the end of the year.
A. What was the amount of cash paid for dividends during the year?
B. Where will this amount appear on the statement of cash flows?
C. How would the amount appear if the company uses the direct method to prepare the statement?

Question

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The Answer of A company uses the indirect method to prepare the statement of cash flows. The board of directors
declared dividends on common stock of $165,000 during the year. Dividends payable were $48,000 at the
beginning of the year and $44,000 at the end of the year.
A. What was the amount of cash paid for dividends during the year?
B. Where will this amount appear on the statement of cash flows?
C. How would the amount appear if the company uses the direct method to prepare the statement?

A Company Uses the Indirect Method to Prepare the Statement