Cash dividends of $50,000 were declared during the year. cash dividends payable were $10,000 and $5,000 at the beginning and end of the year, respectively. the amount of cash for the payment of dividends during the year is

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Business

Jonah Mills

24 August, 14:30

Cash dividends of $50,000 were declared during the year. cash dividends payable were $10,000 and $5,000 at the beginning and end of the year, respectively. the amount of cash for the payment of dividends during the year is

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Dashawn Copeland · Answer 1

The amount of cash for the payment of dividends during the year can be calculated using the following formula:

Amount of Cash Dividend Paid = Begining Cash Dividends Payable + Cash Dividends declared - Ending Cash Dividends Payable

We are given the following information:

Begining Cash Dividends Payable = $10,000

Cash Dividends declared = $50,000

Ending Cash Dividends Payable = $5,000

Hence, Amount of Cash Dividend Paid = 10000+50000-5000 = $55,000