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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.

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Q: Is a declaration of dividends reported on a statement of cash flows?
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