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:

MST/MSE

Mean Squared Error (MSE) is a measure of the average squared difference between estimated and actual values, used as an indicator of the accuracy of predictive models.

SST

The total sum of squares in a dataset, representing the total variation from the overall mean.

Population Means

The average value of a particular characteristic across the entire population under study.

Total Number

The complete count or amount of items or units being considered.