Where is dividend income recorded in the cash flow statement?
If the company receives dividends from an investment, that is considered dividend income. Any dividend income should be recorded in the operation section as a cash inflow. Dividends received is #3 in the visual below.
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What are the three sections of the cash flow statement?
The three sections are operating, inventing, and financing. The phrase “Oops I forgot” is helpful to remember the three section. The “O” in oops represents operating, the “I” represents investing, and the “f” in forgot represents financing. The operating section of the statement of cash flows will represent the cash inflows and outflows from operating […]
How to calculate free cash flow?
Free cash flow represents cash generated by the company through the income statement, but also needs to factor in changes in net working capital, capital expenditures, and other cash flow items. Unlevered free cash flow represents cash the company generates or losses prior to factoring in interest on debt, as well as state and federal […]