Neapolis Limited has 40,000 shares in issue. On 31 August 2018, the company declared a final dividend for the financial year ended 31 August 2018 of 25 pence per share. This final dividend was paid on 31 October 2018. On 1 February 2019, the company declared an interim dividend of 10 pence per share with this dividend being paid to shareholders on 30 April 2019. On 31 August 2019, the company declared a final dividend for the year ended 31 August 2019 of 35 pence per share, this final dividend to be paid on 31 October 2019. What figure will Neapolis Limited present in its statement of cash flows for the financial year ended 31 August 2019 for dividends paid during the year?

Question

Quizplus · Accepted Answer

For the financial year ended 31 August 2019, Neapolis Limited will present the dividends paid during the year, which include the final dividend paid on 31 October 2018 (25 pence per share for 40,000 shares = £10,000) and the interim dividend paid on 30 April 2019 (10 pence per share for 40,000 shares = £4,000). The total is £14,000. The final dividend declared on 31 August 2019 to be paid on 31 October 2019 falls outside the financial year ended 31 August 2019 and is not included.

Neapolis Limited Has 40,000 Shares in Issue