How will Dr Pepper Snapple’s dividend impact its financial statements?

photo of dr pepper 12 packs of sodaOn November 16, 2016, Dr Pepper Snapple Group, Inc. (NYSE: DPS) made the following announcement:

“Dr Pepper Snapple Group, Inc. (NYSE: DPS) today announced that its Board of Directors declared a quarterly dividend of $0.53 per share on the company’s common stock.  The dividend is payable in U.S. dollars on January 5, 2017, to shareholders of record on December 13, 2016.”

Questions

  1. What is the declaration date? How will assets, liabilities, and equity be impacted, if at all, on this date?
  2. What is the date of record? How will assets, liabilities, and equity be impacted, if at all, on this date?
  3. What is the date of payment? How will assets, liabilities, and equity be impacted, if at all, on this date?
  4. How will the income statement be impacted, if at all, by the dividend declaration? Explain.
  5. How will the statement of retained earnings be impacted by the dividend declaration? Explain.
  6. How and when will the statement of cash flows be impacted by this dividend? Explain.

Instructor Resources

These resources are provided to give the instructor flexibility for use of Accounting in the Headlines articles in the classroom. The blog posting itself can be assigned via a link to this site OR by distributing the student handout below. Alternatively, the PowerPoint file below contains a bullet point overview of the article and the discussion questions.

  • Student handout (pdf) (word) (contains entire blog posting + discussion questions)
  • PowerPoint file (brief article overview + discussion questions)

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License.

About Dr. Wendy Tietz, CPA, CMA, CGMA

Dr. Wendy Tietz is a professor of accounting at Kent State University in Kent, Ohio, USA. She is also a textbook author with Pearson Prentice-Hall.

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