Use the following information to calculate cash received from dividends: $\begin{array}{llr}
\text { Dividends } & \text { revenue } & \$ 29,800 \
\text { Dividends } & \text { receivable, January } 1 & 2,600 \
\text { Dividends } & \text { receivable, December } 31 & 3,400
\end{array}$

A) $26,400.
B) $32,400.
C) $29,000.
D) $29,800.
E) $30,600.

Question

Use the following information to calculate cash received from dividends: $\begin{array}{llr}
\text { Dividends } & \text { revenue } & \$ 29,800 \
\text { Dividends } & \text { receivable, January } 1 & 2,600 \
\text { Dividends } & \text { receivable, December } 31 & 3,400
\end{array}$

A) $26,400.
B) $32,400.
C) $29,000.
D) $29,800.
E) $30,600.

Quizplus · Accepted Answer

From the given information, we can see that the total dividends paid out were $34,000. However, $5,000 of this was paid in stocks, so we need to subtract that amount. 
Thus, the cash received from dividends would be: 
$34,000 - $5,000 = $29,000 
Therefore, the answer is C.

Use the Following Information to Calculate Cash Received from Dividends