- November 24, 2015 at 4:43 pm #284952
scents had following balances:
loan interest accrual $5000——– $3000
apprvd ordinary dividnd $20000–$25000
10%loan notes. $100000–$100000
ordinary share capital $150000-$150000
8%pref. share capital $50000-$50000
How much will appear in the st. of cash flow for the year ended 30sep 2005 for the ordinary dividend paid?
a.$20000 b.$24000 c.$25000 d.$29000November 24, 2015 at 4:45 pm #284955
which will appear in st. of cash flows and why?please explain sir..November 24, 2015 at 4:49 pm #284957
You must have an answer in the same book in which you found the question!
Do not simply set test questions here – ask about whatever problem you have with the answer and then I will try my best to help.
(And, obviously, I do assume that you have watched all of our free lectures. Our lectures are a complete course for Paper F3 and cover everything you need to pass the exam well 🙂 )November 25, 2015 at 11:13 am #285156
well,sir the solution says the answer is $20000.which is dividend related to 2004.
but the question also mentioned approved dividend $25000 related to 2005.
my concern is that,is the dividend approved for the year will paid in the next year.
eg. $25000 approved in 2005 will paid in 2006??November 25, 2015 at 4:08 pm #285219
Yes. If there is a balance for approved dividend on the SOFP then it means that it has not been paid (and is showing as a current liability).
So the dividend owing at the end of 2005 will be paid in 2006.
The dividend actually paid in 2005 will have been the dividend that was owing at the end of 2004 (i.e. 20,000)November 26, 2015 at 12:26 am #285314
thank you very much sir!
one more question,
interest on cash deposits at the bank amounted $75.
in statement of cash flow is this going to effect investment income under operating activity and the interest received under investing activity?
I think as this is only a bank deposits and not investment so that will only effect operating activity not investment activity.
please explain sir!November 26, 2015 at 8:51 am #285377
Interest received should appear under the heading “investing activities” and should not be included intake operating cash flows.
- You must be logged in to reply to this topic.