The answer is no since there is no actual cash outflow at declaration date.
Journal Entry at Declaration Date:
Dr. Dividends/Retained Earnings xxx
Cr. Dividends Payable xxx
If you will prepare the cash flow statement using the indirect method, try to imagine the "Dividends" account as if an expense/nominal account. Start first with the net income, assuming only dividends is your transaction during the month...
Net Loss (Dividends) (XXX)
Increase in liability (dividends payable) XXX
The impact is zero 0
*Rule is increase in asset (-), increase in liability (+) for the indirect method of cash flow statement.
Operating activities
Operating Activities ;)
Dividend received is the amount received by company from investing in other companies and shows in cash flows from investing activities.
In the asset area
expenses
Operating activities
Operating Activities ;)
Dividend received is the amount received by company from investing in other companies and shows in cash flows from investing activities.
expenses
In the asset area
financial activities financial activities
a noncash transaction which is not reported in the body of statement of cash flows
a separate schedule
Free cash flow is the sum of operating and investing cash flows, which are reported on the cash flow statement.
37,051
No, it is not a cash flow, and it also is not a significant fiancing or investing activity.
This transaction would not appear on the statement of cash flows because it is a non-cash transaction. The statement of cash flows only shows transactions that involve inflows and outflows of cash.