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Jennings Inc. recognized the following balances in its financial records: Account Dec. 31, 2019 Dec 31, 2020 Dividends payable $ 40,000 $ 10,000 Retained earnings
Jennings Inc. recognized the following balances in its financial records:
Account | Dec. 31, 2019 | Dec 31, 2020 |
Dividends payable | $ 40,000 | $ 10,000 |
Retained earnings | 200,000 | 275,000 |
Jennings Inc. reported net income of $155,000 in 2020.
Based on this information, what is the effect on the financing activities section of the statement of cash flows?
A. | Cash outflow of $80,000 | |
B. | Cash outflow of $110,000 | |
C. | Cash outflow of $50,000 | |
D. | Cash outflow of $30,000
|
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