Help with ACCG105 Assignment qs (1 Viewer)

[CheeseHelpLine]

Hi guys, I really need help with this question.

It asks me to state what is the actual amount of dividend paid by a certain organisation and I'm stuck on Network Ten's because it gives me three different figures:

Under accumulated loss/retained earnings and dividends notes it gives 124,680
Under cash flows from financing activities in cash flow statement it's 125,225
Under abridged/consolidated income statement from deed of cross guarantee, it's 130,966.

These three are absolutely conflicting values and I can't work out which one is the right one. It was really easy for the Seven Network one.

Any help would be appreciated. =)

 

[Monstar]

Hi guys, I really need help with this question.

It asks me to state what is the actual amount of dividend paid by a certain organisation and I'm stuck on Network Ten's because it gives me three different figures:

Under accumulated loss/retained earnings and dividends notes it gives 124,680
Under cash flows from financing activities in cash flow statement it's 125,225
Under abridged/consolidated income statement from deed of cross guarantee, it's 130,966.

These three are absolutely conflicting values and I can't work out which one is the right one. It was really easy for the Seven Network one.

Any help would be appreciated. =)

Dividends are paid outta profits.

 

[Luke!]

You need to tell us two things:

1. Whether you want to know the dividends paid on a cash or accrual basis.
2. Whether you want to know the dividends paid for the consolidated group or just the Ten Network company.

From the notes to the financial statements, I would give you this answer on a cash basis for the consolidated group:

December 2008 Interim Dividend Paid 92,215
June 2007 Final Dividend 32,465

92,215 + 32,465 = 124,680

This is the amount 'actually' paid (i.e; paid on a cash basis) for the entire Ten group in the 2008 financial year.

 

[CheeseHelpLine]

You need to tell us two things:

1. Whether you want to know the dividends paid on a cash or accrual basis.
2. Whether you want to know the dividends paid for the consolidated group or just the Ten Network company.

From the notes to the financial statements, I would give you this answer on a cash basis for the consolidated group:

December 2008 Interim Dividend Paid 92,215
June 2007 Final Dividend 32,465

92,215 + 32,465 = 124,680

This is the amount 'actually' paid (i.e; paid on a cash basis) for the entire Ten group in the 2008 financial year.

Thats awesome thanks and it makes a ! The question required to figures from consolidated group and it was asking the amount "actually paid" which as you said cash basis. The question is: " [FONT=&quot]What was the amount of dividends actually paid during the 2008 financial year?[/FONT]"

But there's one thing I don't understand then why in the cash flow statement $125,225? Shouldn't this amount matched with whats in retained earnings etc etc? Sorry not that great with accounting. =/

 

[Luke!]

Sorry, mate. I just double-checked and I obviously misread the notes.

Cash basis: 124,680 for the Ten Company. > Matches the notes to the financial statements.
Cash basis: 125,225 for the Ten Group.

So I think your answer should be 125,225, not 124,680.

Does that solve your problem?

 

[CheeseHelpLine]

Sorry, mate. I just double-checked and I obviously misread the notes.

Cash basis: 124,680 for the Ten Company. > Matches the notes to the financial statements.
Cash basis: 125,225 for the Ten Group.

So I think your answer should be 125,225, not 124,680.

Does that solve your problem?

Yup it does! Thanks heaps for the help! =)