Use the following information to calculate cash received from dividends: $\begin{array}{|l|r|}
\hline \text { Dividends revenue } & \$ 29,800 \
\hline \text { Dividends receivable, January 1 } & 2,600 \
\hline \text { Dividends receivable, December } 31 & 3,400 \
\hline
\end{array}$
A)$26,400
B)$29,000
C)$29,800
D)$30,600
E)$32,400

Question

Quizplus · Accepted Answer

To calculate cash received from dividends, we need to start with the dividends revenue and adjust for any dividends receivable at the beginning and end of the year. 
Cash received from dividends = Dividends revenue - Dividends receivable, January 1 + Dividends receivable, December 31 
= $29,800 - $2,600 + $3,400 
= $30,600 
Therefore, the correct answer is B) $29,000.

Use the Following Information to Calculate Cash Received from Dividends