Question

The board of directors declared cash dividends totaling $160,000 during the current year. The comparative balance sheet indicates dividends payable of $43,200 at the beginning of the year and $38,900 at the end of the year.

Required:
What was the amount of cash payments to stockholders during the year?

Answer 1

Answer: $164,300

Explanation:

Cash payments to stockholders shows the total amount that the shareholders of a company got during the year. It includes the money owed to them at the start of the year in addition to cash paid during the year.

= Beginning dividends payable + Dividends for the year - Ending dividends

= 43,200 + 160,000 - 38,900

= $164,300