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Determining Dividends Paid on Statement of Cash Flows
Clifford Company's comparative balance sheet included dividends payable of $80,000 at December 31, 2015, and $100,000 at December 31, 2016. Dividends declared by Clifford during 2016 amounted to $400,000.
Required:
1. Calculate the amount of dividends actually paid to stockholders during 2016.
2. How will Clifford report the dividend payments on its 2016 statement of cash flows?
(A) financing activity
(B) investing activity
(C) operating activity
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