Derive cash disbursements for dividends Johnson & Johnson, a pharmaceutical and medical products company, reported a balance in retained earnings of $26,571 million at the beginning of the year and $28,132 million at the end of the year. Its dividends payable account increased by $233 million during the year. It reported net income for the year of $5,030 million. How much cash did Johnson & Johnson disburse for dividends during the year? Indicate where this information would appear in the simplified statement of cash flows in Exhibit5.16.

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Simplified Statoment of Cash Flows (Problem 5.5 for Self-Study) EXHIBIT 5.16 Operations Cash Receipts from Customers Less: Cash Payments to Suppliers, Employees, and Others . Cash Flow from Operations [- (1) – (2)).. Reconciliation of Net Income to Cash Flow from Operations (1) -(2) 51 Net Income (3) Additions to Net Income to Compute Cash Flow from Operations Subtractions from Net Income to Compute Cash Flow from Operations.. Cash Flow from Operations [- (3) + (4) - (5)1. +(4) -(5) 51 Investing Proceeds from Dispositions of "Investing" Assets.. +(6) Cash Used to Acquire "Investing" Assets... -(7) Cash Flow from Investing [- (6) - (7)1 S2 Financing Cash Provided by Increases in Debt or Capital Stock.. +(8) Cash Used to Reduce Debt or Capital Stock. Cash Used for Dividends... Cash Flow from Financing [- (8) - (9) - (10)). Net Change in Cash [- 51 + S2 + 53] Cash, Beginning of the Period.. Cash, End of the Period [- (11) + 54]. -(9) -(10) 53 (11) 54 S5