Equity Part 3
When to use
When constructing a basic financial model.
- This section calculates the dividend Payable Control Account
- The Retained Profits, NPAT and Cash Flow Available for Dividends in Rows 386-388 are all taken from the Financial Statements
- The Maximum Dividend Payable formula is
- The Dividend Based on Ratio is the maximum of NPAT x Maximum Dividend Payable and 0
- The dividend Declared is the minimum of the Dividend Based on Ratio and the Maximum Dividend Payable
- The Opening Dividend Declared is taken from the previous period’s closing balance
- The Dividend Declared is taken from the calculation in Row 394
- The Dividends Paid is the Opening Balance shown as a negative
- The sum of the above will give the Closing Dividend Payable
- The Control Account can now be transferred into the Financial Statements:
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