Determining Cash Payments to Stockholders The board of direc

Determining Cash Payments to Stockholders

The board of directors declared cash dividends totaling $1,200,000 during the current year. The comparative balance sheet indicates dividends payable of $250,000 at the beginning of the year and $100,000 at the end of the year.

What was the amount of cash payments to stockholders during the year?

Solution

The amount of cash payments to stockholders during the year was:

= $250,000 + $1,200,000 - $100,000

= $1,350,000