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    jrodgers's Avatar
    jrodgers Posts: 9, Reputation: 1
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    #1

    Apr 3, 2007, 06:20 PM
    Cash Dividends?
    Cash Dividends of $75,000 were declared during the year. Cash dividends payable were $10,000 and $20,000 at the beginning and end of the year, respectively. The amount of cash for the payment of dividends during the year is?

    My calculation if it is during the year would be 75,000 - 10,000 = 65,000. Not sure if this is correct or not.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Apr 3, 2007, 11:59 PM
    Jan 1, We must pay out 10,000
    During Year, we must pay out 75,000
    We must pay out 85,000 total during the year.
    Dec 31, we must pay out 20,000

    We have paid out 85,000-20,000 = $65,000 during the year.

    Yes, you are correct, $65,000
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