Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet: How will dividend payments be shown on the statement of cash flows?

Question

Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet:   How will dividend payments be shown on the statement of cash flows?

Quizplus · Accepted Answer

Dividend payments are considered cash outflows from financing activities, so they will be shown as a negative $10,000 in the financing section of the statement of cash flows.

Avatar Company Uses the Indirect Method to Prepare Its Statement