Recording the cash dividend on cash flows statement


Response to the following problem:

Wellness Health Laboratories began 20X4 with cash of $104,000. During the year, Wellness earned service revenue of $600,000 and collected $590,000 from customers. Expenses for the year totaled $420,000, of which Wellness paid $410,000 in cash to suppliers and employees. Wellness also paid $140,000 to purchase equipment and a cash dividend of $50,000 to its stockholders during 20X4.

Prepare the company's statement of cash flows for the year ended December 31, 20X4. Format operating activities by the direct method.

 

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Financial Accounting: Recording the cash dividend on cash flows statement
Reference No:- TGS02112833

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