Calculating Dividend Value - CFLO Statement declared, change, method

Makavelim3

Using Indirect method of calculating change in dividends on the Cash flow statement:

Dividend(END) = Dividend(BEG) + Dividend(DECLARED) – Dividend(PAID)

The dividends declared doesn't make sense to me...

ajpheif16

Dividends declared but not paid will become Dividends Payable and will be treated as source of cash.

kamara5

Source of cash to the company/issuer?

dotamasta

Yes. When you have to pay for something but not yet paid, its a source of cash for you until you pay it out.