Skip87
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- Aug 24, 2007
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When constructing a cash flow statement, how should preferred dividends be treated?
Here's what I did:
Cash flow from operations
Net Income (minus preferred dividends)
Cash flow from Financing
Dividends paid: 0 (because I already took it out from net income in cash flow from operations)
Did I do everything correctly, or should I use the net income before proffered dividends as the net income for OPERATIONS and subtract out preferred dividends from FINANCING?
any help will be much appreciated, thanks.
*i'm trying to get an answer as fast as possible so that's why i'm spamming all the message boards that I have bookmarked.
Here's what I did:
Cash flow from operations
Net Income (minus preferred dividends)
Cash flow from Financing
Dividends paid: 0 (because I already took it out from net income in cash flow from operations)
Did I do everything correctly, or should I use the net income before proffered dividends as the net income for OPERATIONS and subtract out preferred dividends from FINANCING?
any help will be much appreciated, thanks.
*i'm trying to get an answer as fast as possible so that's why i'm spamming all the message boards that I have bookmarked.