Marshland Company is preparing the company\'s statement of cash flows for the fi

ID: 2456059 • Letter: M

Question

Marshland Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

The amount of cash paid for dividends was:

$44,000.

$40,000.

$57,000.

$53,000.

$36,000.

In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information is available:

Net cash provided by operating activities was:

$120,000.

$60,000.

$70,000.

$80,000.

$130,000.

Cash dividends declared for the year $40,000 Cash dividends payable at the beginning of the year $17,000 Cash dividends payable at the end of the year $13,000

Explanation / Answer

Cash Dividend Paid for the Year

Cash Dividend Payable at the Beginning of the Year

$17000

Add Cash Dividend Declared During the Year

$40000

Less Cash Dividend Payable at the end of the Year

$13000

Cash Dividend Paid during the Year

$44000

Cash Flow Statement

Net Income for the Year

$52000

Increase in Accounts Payable

$18000

Decrease in Accounts Receivables

$25000

Increase in Inventories

-$5000

Depreciation

$30000

$68000

Net Cash provided by Operating Activities

$120000