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2002 2003
current liabilities
proposed dividend 30 40addtional information
the proposed dividends on the company’s ordinary share capital. No Interim dividend were paid.For this part that u answered just now
Well that looks like a payment of cash amounting to $30 during the year
That dividend payment of $30 outflow may be shown in either of 2 places …
1) as an outflow within operating activities or
2) as an outflow within financing activities
May I know how do we know it is 30 dividend paid during the year? I dont understand for it
Because it was a dividend that was proposed at the end of last year (that’s why it was a current liability at the end of last year)
When the company says to its shareholders “We’re proposing to pay a dividend of $40 this year … but we’re not going to pay you that $30 that we promised last year!”
What do you reckon?
I was not understand is because in usually we find the dividend paid is using
opening balance+ dividend for the year- dividend paid =closing balance
in order to find the dividend paid that why I don’t understand y straight away use the opening balance to put at dividend paid?
and when I do so the answer that I find for the overall final answer and compare to what I get by using closing cash balance – opening cash balance is differentLily, have you worked through the chapter on cash flows and watched the video where I explain about the brought forward dividend liability?
Clearly you haven’t so I’m going to ask you to do so now and then, if necessary, come back to me again … but it shouldn’t be necessary!
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