A Company Uses the Indirect Method to Prepare the Statement

question 87

Essay

A company uses the indirect method to prepare the statement of cash flows.The board of directors declared dividends on common stock of $165,000 during the year.Dividends payable were $40,000 at the
Beginning of the year and $45,000 at the end of the year.

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?

• 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:

Plasma Cell

A type of white blood cell that produces and secretes large volumes of antibodies, playing a critical role in the immune response.

Antigen Presenting Cells

Immune cells that process and present antigens to T-cells, initiating an immune response.

B Cell

A type of white blood cell that plays a significant role in the body's immune response by producing antibodies to fight off pathogens.

CD8

A glycoprotein found on the surface of immune cells, such as T-cells, playing a crucial role in the immune system by killing cancer cells, cells that are infected (particularly with viruses), or cells that are damaged in other ways.