Solve please

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Solve this

Operating leverage = % change in EBIT÷% change in Sale

6 = x/5,00,000 ÷ 5,00,000/50,00,000

Find out x

Please elaborate the Answer in detail

Ans:- x = 30,000

 

2nd question:- related to cash flow

Proposed Dividend opening bal 60,000 & closing Balance 90,000

Aditional information:-

Director have proposed 15% dividend for the current year

What impact of this information in Cash flow question ?

Replies (2)

Hi,

 

Your first ques is not clear....pls elaborate

 

WRT cash flow, only actaul cash recipts/expenses are considered....since dividend is not paid but only proposed, it will have no impact on Cash flow.....wen it is actually paid then only it will considered as outflow of cash....

 

Hopefully it is clear

 

Opening balance 30000 Add proposed (amt) Less closing baalnce 60000 Bal fig (div paid)* * this amount will be deducted from financing activities


CCI Pro

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