Question

The accountant for Sysco Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $ 819,000 Net income for the year 230,000 Cash dividends declared for the year 42,000 Retained earnings balance at the end of the year 1,007,000 Cash dividends payable at the beginning of the year 10,000 Cash dividends payable at the end of the year 11,000 What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows?a. $42,000.b. $42.000c. $43,000d. $63.000.e. $1,000f. $41000

Answer 1

Answer:

Correct option is F,$41,000

Explanation:

The cash dividends paid in the year is the sum of the cash dividends payable at the beginning of the year and cash dividends declared in the year less cash dividends payable at the end of the year.

The cash dividends paid in the year is summarized thus:

Cash dividends payable at the beginning of the year   $10,000

Cash dividends declared in the year                               $42,000

Cash dividends payable at the end of the year              ($11,000)

cash dividends paid in the year                                         $41000

This cash dividends paid would appear under the financing activities section of the cash flow statement as an outflow.