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    vanshelwhit's Avatar
    vanshelwhit Posts: 1, Reputation: 1
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    #1

    Feb 8, 2010, 08:08 PM
    Calculate cash dividends
    How to show cash dividends on a balance sheet. The company has 230 in revenue, and 190, 00 in inceom taxes but paid 25, 000 in cash dividends.
    enfritsch's Avatar
    enfritsch Posts: 3, Reputation: 1
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    #2

    Feb 8, 2010, 08:44 PM

    If the dividends were a payable at the balance sheet date you'd have a payable. Then on the equity portion you have a distribution to owners. Otherwise its just cash out and distribution to owners.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Feb 11, 2010, 12:56 AM

    The distribution to owners would never show on the balance sheet. "Cash dividends," which implies what was declared for that year, are not on the balance sheet. They are subtracted from retained earnings. If it shows somewhere, it'll be the statement of retained earnings.

    If there's a dividend payable, yes that'll be on the balance sheet. However, that is not necessarily the same amount as the dividends declared. Just like with any other payable, it represents some portion that is still due to be paid, and may or may not agree with numbers elsewhere.
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