Dividends on the Statement of Cash Flows ??

The following selected account balances are available from the records of Annapolis Company:

December 31

2007 2006

Dividends payable $56,000 $35,000

Retained earnings $692,000 $534,000

Other information available for 2007 follows:

a. Annapolis reported $454,000 net income for the year.

b. It declared and distributed a stock dividend of $100,000 during the year.

c. It declared cash dividends at the end of each quarter and paid them within the next 30 days of the following quarter.

Determine the amount of cash dividends paid during the year for presentation in the Financing Activities section of the statement of cash flows.

Dividends on the Statement of Cash Flows ??credit bureau

It looks like they declared cash dividends of 196,000 but only paid out 175,000 in cash dividends.

Retained earnings should have gone up by 454,000, except for the amount declared for dividends. It only went up by 158,000, so they declared 296,000 in dividends. 100,000 was in stock dividends. that leaves 196,000 declared in cash dividends, but since their balance in dividends payable went up by 21,000 you will subtract this from the 196,000 (as they did not pay that 21,000 yet).