Question

The account balances for the noncash current assets and current liabilities of Abraham Music Company are as follows:


Other information for 2008:
a. Abraham reported $375,000 in net income for 2008.
b. The company declared and distributed a stock dividend of $85,000 during the year.
c. The company declared cash dividends at the end of each quarter and paid them within the first 30 days of the next quarter.

Required
A. Determine the amount of cash dividends paid during the year for presentation in the Financing Activities section of the statement of cash flows.
B. Should the stock dividend appear on a statement of cash flows? Explain youranswer.


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  • CreatedMarch 11, 2015
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