Use the following information to calculate cash received from dividends: $\begin{array}{llcc}
\text { Divdends reveruse } & \$63,500 \
\text {Dividends receivable, January I } &3,600\
\text { Dividends receivable, December 31 } &3,100\
\end{array}$

A) $63,500.
B) $63,000.
C) $64,000.
D) $67,100.
E) $60,400.

Question

Use the following information to calculate cash received from dividends: $\begin{array}{llcc}
  \text { Divdends reveruse } & \$63,500 \
 \text {Dividends receivable, January I  } &3,600\
 \text { Dividends receivable, December 31 } &3,100\
\end{array}$

A) $63,500.
B) $63,000.
C) $64,000.
D) $67,100.
E) $60,400.

Quizplus · Accepted Answer

Cash received from dividends would be dividends received during the year minus dividends receivable at the end of the year, plus dividends receivable at the beginning of the year.

$Cash\ Received\ from\ Dividends = Dividends\ received\ during\ the\ year - Dividends\ receivable\ at\ the\ end\ of\ the\ year + Dividends\ receivable\ at\ the\ beginning\ of\ the\ year$

$Cash\ Received\ from\ Dividends = \$63,500 - \$3,100 + \$3,600 = \$64,000$

Therefore, the correct answer is C) $64,000.

Use the Following Information to Calculate Cash Received from Dividends