If the Opening Balance of Equity Is $45,000, the Closing

Multiple Choice

If the opening balance of equity is $45,000, the closing balance is $60,000 and profit is $27,000, calculate the amount of dividends paid (assume all dividends declared have been paid) which will appear as a financing outflow in the statement of cash flows.

A) $15,000.
B) $42,000.
C) $12,000.
D) Nil.