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:

Fill Orders

The process of completing customer orders for goods or services.

Manufacturing Cycle Efficiency

a measure of the efficiency of the production process, typically calculated as the ratio of value-added time (the time spent actually transforming the product) to total cycle time.

Fill Orders

The process of completing customer orders by preparing and delivering the specified goods or services.

Throughput Time

The total time taken to complete a process from start to finish, often used in manufacturing to assess efficiency.