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where does dividend payable go in the cash flow statement? I know "dividends paid" go under...

where does dividend payable go in the cash flow statement? I know "dividends paid" go under financing activities, but what about dividends payable? Does it go under operating or financing activities? or both???? can someone help me with this question please!!! thanks in advance.

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Answer #1

Dividend Payable is a liability in balance sheet, but it does not effect the statement of cash flows until the company pays the dividend amount. Dividend payable is normally a current liability as it was paid after declaration and creation of payable.

Dividend payments are reflected in Financing activity in Cashflow statement.

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