Dividends paid

Hello Sir, For the below Q Why in their solution for the net cash generated or used in operating activities they deducted the dividens paid.As per my knowledge dividends paid will be deducted from cash generating from financing activities . Thanks, ---------------------- Q The following scenario relates to question 21 - 25 Grace Co is in process of creating its statement of cash flows for the year ended 31 December 2017. The relevant income statement and statement of financial position are as follows: Income Statement for the Year Ended 31 December 2017 $’000 Sales 810 Cost of goods sold (140) Gross profit 670 Depreciation (90) Admin expenses (20) Loss on disposal of non-current asset (20) Operating profit 540 Interest paid (30) Taxation (160) Net profit 350 Statement of Financial Position as at 31 December 2017 2016 $’000 $’000 Non-current assets Cost 1,460 1,400 Depreciation 250 200 1,210 1,200 Current assets Inventory 45 35 Trade receivables 60 65 Cash and bank 25 20 130 120 Total assets 1,340 1,320 Equity and liabilities Share capital 310 300 Share premium 125 120 Retained earnings 695 400 1,130 820 Loan 90 380 Trade payables 40 70 Taxation 80 50 1,340 1,320 Additional Information: Dividends of $55,000 were paid during the year. The company purchased a new noncurrent asset of $100,000 in cash during the year. 22. What is the net cash generated from (or used in) operating activities? A) $400,000 B) $215,000 C) ($400,000) D) ($215,000) -------------- Answer 22. A Cash generated from operations $615,000 Interest paid ($30,000) Dividends paid ($55,000) Tax paid (50 + 160 - 80) (130,000) Net cash from operating activities $400,000