The following selected account balances are available from the records of Lewistown Company:
December 31
2012 2011
Dividends payable...........................................$ 30,000............$ 20,000
Retained earnings.............................................375,000.............250,000
Other information available for 2012 is as follows:
a. Lewistown reported net income of $285,000 for the year.
b. It declared and distributed a stock dividend of $50,000 during the year.
c. It declared cash dividends at the end of each quarter and paid them within the next 30 days of the following quarter.
Required
1. Determine the amount of cash dividends paid during the year for presentation in the Financing Activities section of the statement of cash flows.
2. Should the stock dividend described in part (b) appear on a statement of cash flows? Explain your answer.