A Company Uses the Indirect Method to Prepare the Statement

question 11

Essay

A company uses the indirect method to prepare the statement of cash flows. The board of directors declared $165,000 in common stock dividends during the year. At the beginning of the year, there were $48,000 in dividends payable on common stock; and, $44,000 dividends payable at the end of the year.
Answer the following questions:
(a)What was the amount of cash paid for dividends during the year?
(b)Where will this amount appear on the statement of cash flows?
(c)How would the amount appear if the company uses the direct method to prepare the statement?

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Definitions:

Union-management Relations

The relationship and interactions between labor unions and employers or management, including negotiations, contracts, and disputes.

Labor Unions

Organizations formed by workers from related fields that work together to protect their rights and interests, negotiate wages, and ensure safe working conditions.

Steel Industry

The sector of the economy engaged in the production, processing, and distribution of steel and steel products.

Industrial Workers of the World

An international labor union founded in 1905, known for its belief in the unity of all workers and the need for industry-wide unions.