Determining Dividends Paid on Statement of Cash Flows

Clifford Company's comparative balance sheet included dividends payable of $72,000 at December 31, 2016, and $100,000 at December 31, 2017. Dividends declared by Clifford during 2017 amounted to $400,000.

Required:

1. Calculate the amount of dividends actually paid to stockholders during 2017.

$fill in the blank 1

2. How will Clifford report the dividend payments on its 2017 statement of cash flows?

Financing activity Investing activity or Operating activity