Determine the amount of cash dividends

Assignment Help Financial Accounting
Reference no: EM132868931

Problem - Dividends on the Statement of Cash Flows - The following selected account balances are available from the records of Lewistown Company:

 

December 31

 

2016

2015

Dividend payable

$30,000

$20,000

Retained earnings

375,000

250,000

Other information available for 2016 is as follows:

a. Lewistown reported net income of $285,000 for the year.

b. It declared and distributed a stock dividend of $50,000 during the year.

c. It declared cash dividends at the end of each quarter and paid them within the next 30 days of the following quarter.

Required -

1. With the use of T accounts, determine the amount of cash dividends paid during the year for presentation in the Financing Activities section of the statement of cash flows.

2. Should the stock dividend described in part (b) appear on a statement of cash flows? Explain your answer.

Reference no: EM132868931

Questions Cloud

Compare these two risk resolution strategies : Discuss how you have used or might use risk protection and risk transfer in a situation at work. Compare these two risk resolution strategies.
Identify 10 industrial hydroponic companies : Identify 10 industrial hydroponic companies
Customization payroll disaster at the government of canada : Answer the following based on the case below (word count doesn't matter as long as the responses are detailed):
How has computer graphics influenced the gaming industry : How has computer graphics influenced the gaming industry? Write a short survey on computer graphics. Follow the APA Publications Manual sixth Ed
Determine the amount of cash dividends : Determine the amount of cash dividends paid during the year for presentation in the Financing Activities section of the statement of cash flows
Write opinion in opposition of implementing the product : Choose one of these defensive technologies and describe its function, how it is implemented and maintained. Then pick a commercial or open source
How would you handle these conflicting objectives : How would you handle these conflicting objectives? What are your recommendations to project management regarding this risk?
Describe each tool and it capabilities and the advantages : Describe each tool and it's capabilities and the advantages of having it in your Forensics Toolkit. Considerations should include, functionality
Determine Stanton net income for first year of operations : The statement of cash flows for the first year reported dividends paid of $160,000. Determine Stanton's net income for its first year of operations

Reviews

Write a Review

Financial Accounting Questions & Answers

  Develop an ability to identify and assume an assigned role

To develop an ability to identify and assume an assigned role. to be able to identify and rank the importance of explicit issues. illustrate the importance of hidden (undirected) issues that arise from a detailed analysis.

  Allocate joint costs using the relative sales values

Allocate joint costs using the relative sales values at the split-off point and calculate the profit per 100 pound box of sugar-coated peels and the profit per pint of juice.

  Make the sales budget for the first quarter of the year

Bengal Corporation, Prepare the Sales Budget, Schedule of Expected Cash collection and Production Budget for the first quarter of the year 2020.

  How should the gift certificates that are never redeemed

How should the gift certificates that are never redeemed be treated? at some point in the future can the liability related to them be eliminated?

  Determine the amount of Carlson accounts receivable

The company began the year with $10,500 in accounts receivable. Determine the amount of Carlson accounts receivable

  Calculate the price-profit indicator

The Renew Company has an earnings per share (EPS) of $ 3.50, a value per share of $ 35, and a market value of $ 36. Calculate the price / profit indicator (P/E)

  Identify two methods needed to avoid restriction limits

Identify at least two methods needed to avoid restriction limits. Develop various budget charts that represent segments of the budgeting process. Use technology and information resources to research issues in public budgeting and finance.

  What the purchase price of the wine in US dollars is close

French wine at a cost of 5,000,000 euros. If the current exchange rate is 0.78 euros to the U.S. dollar, the purchase price of the wine in U.S. dollars is close

  What is meant by the investor required rate of return

What is meant by the investor's required rate of return? How do we measure the riskiness of a security such as a company share? Explain your answer

  Compare and contrast the ledger and journal

Compare and contrast the ledger and journal. Do you feel we need both the journal and the ledger? Why/why not? Explain the best place to find the information if you wanted to see both the debit and credit side of an entry? If you wanted to see the ba..

  Determine the net receivables at december 31

Determine the net receivables at December 31, 2016 and Calculate the receivables turnover ratio for 2015 and 2016. Calculate the days to collect for 2015

  Review of the conceptual framework for financial reporting

Discuss recent developments of the Conceptual Framework referring to the discussion paper on "Review of the Conceptual Framework for Financial Reporting" IASB, (2013).

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd