Cash Flow Statement

S. Ramya (Student) (39 Points)

12 March 2009  

Kindly clarify the following query:

How should we treat Unpaid/Unclaimed Dividend under Indirect Method of Cash Flow?

Eg:

Particulars                              As on 31.3.2001      As on 31.3.2002

Proposed Dividend                1,20,000                     1,44,000

Unpaid Dividend                        0                                   16,000

No additional Information

Here are my queries:

Isn't unpaid dividend part of Current Liabilities? So, will it affect cash flow from operating activities due to working capital changes?

If yes, how much will be the Dividend Paid under Cash Flow from financing activities.

Thanking you in advance