Q.3What will be the treatment of Proposed Dividend in cash flow
statement? If values for the year 2018 was Rs.5000 & 2019 was
6000.
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Answer:
Amount of dividend proposed for the previous year is shown as outflow of cash assuming that the shareholders have approved the proposed dividend as was recommended. Also, it will be added to determine Net Profit Before Tax and Extraordinary Items under Cash Flow from Operating Activities.
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