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.
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In statement of cash flows proforma:
BPP book 2015 shows dividends paid in EITHER financing or operating activities but not both
Kaplan 2015 shows dividends paid in BOTH cash flows from operating and financing
Opentuition shows ONLY operating.
Which one is correct?
Thanks again
BPP are correct.
I do not believe that Kaplan shows different. Are you sure that they are not showing it in operating simply to get the correct operating profit?
(Our free lecture may help you)
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they may be the same i.e. in either. However if a question asks to calculate financing only how am i to know if dividends paid has already been included in operating?
opentuition is the better proforma
thanks
The proforma we use is the program from the actual accounting standard 🙂
Because dividends can be in either place, it cannot be asked specifically in the exam (unless you were told which heading they wanted it to be under).
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thanks again!
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hang on whats the difference between interest paid and interest expense?
does interest paid = interest payable?‘Interest payable’ and ‘interest expense’ both mean the same thing – the total interest charge for the year.
Interest paid is the interest actually paid during the year.
(They may not have paid all the interest due for the year and would therefore still be owing some.)
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oh so you add it back for cash generated from operations and deduct it for net cash from operating?
You add back to the profit the interest charged (interest payable) to arrive at the operating profit.
You subtract the interest paid because it is a statement of cash flows.
I have deleted your other post because it included a link to a pirate website. sharing copyright material is illegal and unethical and is not allowed on this website, and neither are links to pirated material.
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