If cash dividends of $145,000 were declared during the year and the decrease in dividends payable from the beginning to the end of the year was $7,000, the statement of cash flows would report $152,000 in the financing activities section.

Question

Quizplus · Accepted Answer

The cash paid for dividends is calculated by adding the decrease in dividends payable to the dividends declared, which equals $152,000 ($145,000 + $7,000).

If Cash Dividends of $145,000 Were Declared During the Year