The balance in retained earnings at December 31, 2020 was $1437000 and at December 31, 2021 was $1165000. Net income for 2021 was $1078000. A stock dividend was declared and distributed which increased common stock $497000 and paid-in capital $22000. A cash dividend was declared and paid. The stock dividend should be reported on the statement of cash flows (indirect method) as Stock dividends are not shown on a statement of cash flows. an outflow from financing activities of $497000. an outflow from financing activities of $519000. an outflow from investing activities of $519000.
The balance in retained earnings at December 31, 2020 was $1437000 and at December 31, 2021 was $1165000. Net income for 2021 was $1078000. A stock dividend was declared and distributed which increased common stock $497000 and paid-in capital $22000. A cash dividend was declared and paid. The stock dividend should be reported on the statement of cash flows (indirect method) as Stock dividends are not shown on a statement of cash flows. an outflow from financing activities of $497000. an outflow from financing activities of $519000. an outflow from investing activities of $519000.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.18E
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The balance in
The stock dividend should be reported on the statement of
Stock dividends are not shown on a statement of cash flows.
an outflow from financing activities of $497000.
an outflow from financing activities of $519000.
an outflow from investing activities of $519000.
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