Harish Kumar (IPCC) (475 Points)
01 August 2014Solve this
Operating leverage = % change in EBIT÷% change in Sale
6 = x/5,00,000 ÷ 5,00,000/50,00,000
Find out x
Please elaborate the Answer in detail
Ans:- x = 30,000
2nd question:- related to cash flow
Proposed Dividend opening bal 60,000 & closing Balance 90,000
Aditional information:-
Director have proposed 15% dividend for the current year
What impact of this information in Cash flow question ?
Vandana J Doshi
(Practising Company Secretary)
(12562 Points)
Replied 02 August 2014
Hi,
Your first ques is not clear....pls elaborate
WRT cash flow, only actaul cash recipts/expenses are considered....since dividend is not paid but only proposed, it will have no impact on Cash flow.....wen it is actually paid then only it will considered as outflow of cash....
Hopefully it is clear
CA MANIK KUMAR
(Manager )
(710 Points)
Replied 02 August 2014
CAclubindia
