A corporation has paid $20,000 in cash dividends each year on its common shares. Although during year 1 the company had a cash shortage, it declared the dividend. However, it was stipulated that the $20,000 cash dividend would not be paid until year 2. This dividend will affect the year 1 Statement of Cash Flows by? : 

a. Decreasing the cash from financing activities

 b. Will not affect the statement of cash flow 

c. Increasing the cash from operating activities 

d. Increasing the cash from financing activities

Answer rating: 100% (QA)

Given A corporation has paid 20000 in cash dividends each year on its com... View the full answer