The document discusses how to report cash dividends paid by Addams Corporation on its statement of cash flows. Cash dividends totaling $75,000 were paid in the most recent fiscal year. The correct reporting is in financing activities as a use of funds.

1. Addams Corporation paid cash dividends totaling $75,000 during its most recent fiscal year.
How should this information be reported on Addam's statement of cash flows?
a.
In operating activities as a source of funds.
b.
In investing activities as a source of funds.
c.
In investing activities as a use of funds.
d.
In financing activities as a source of funds.
e.
In financing activities as a use of funds.
Solution