Kay Company's stock on the last day of the year was $39. Kay reported dividends per share of $0.49 and total dividends of $637,000 on its statement of stockholders' equity. Net income for the year was $4,000,000. The average number of common shares outstanding is 1,300,000.
a. Calculate the dividend payout ratio and the dividend yield for Kay Company. Round percentages to one decimal point (i.e., 9.4%).
b. Where do you find dividends paid in the statement of cash flows?