标题: cash flow for dividend [打印本页] 作者: nixie24 时间: 2011-7-11 18:40 标题: cash flow for dividend
i have to learn things conceptually and just abysmal at memorizing(when i dont have to).
Can someone give a reason why dividend received is part of CFO and dividends paid is part of CFF under the GAAP?作者: Jolyn 时间: 2011-7-11 18:40
There are very good reasons. The Dividends Received represents dividend income from investments the company has made in other enterprises/firms/securities. If a conglomerate has holdings in various companies and receives dividends from these investments, it isn't that unreasonable to classify this as an operating cash flow.
On the other hand, dividends paid out represents part of how the conglomerate itself is financed.
