The accountant for Mandarin Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: $$\begin{array} { l | r }
\text { Retained earnings balance at the beginning of the year } & \$ 819,000 \
\hline \text { Net income for the year } & 230,000 \
\hline \text { Cash dividends declared for the year } & 42,000 \
\hline \text { Retained earnings balanes at the end of the year } & 1,007,000 \
\hline \text { Cash dividends payable at the begining of the year } & 10,000 \
\hline \text { Cash dividends payable at the end of the year } & 11,000
\end{array}$$ 84
What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows?
A) $63,000.
B) $41,000.
C) $1,000.
D) $43,000.
E) $42,000.

Question

The accountant for Mandarin Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: $$\begin{array} { l | r } 
\text { Retained earnings balance at the beginning of the year } & \$ 819,000 \
\hline \text { Net income for the year } & 230,000 \
\hline \text { Cash dividends declared for the year } & 42,000 \
\hline \text { Retained earnings balanes at the end of the year } & 1,007,000 \
\hline \text { Cash dividends payable at the begining of the year } & 10,000 \
\hline \text { Cash dividends payable at the end of the year } & 11,000
\end{array}$$ 84
What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows?
A) $63,000.
B) $41,000.
C) $1,000.
D) $43,000.
E) $42,000.

Quizplus · Accepted Answer

The cash dividends paid can be calculated as: Cash dividends declared ($42,000) + Beginning dividends payable ($10,000) - Ending dividends payable ($11,000) = $41,000.

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