Dividend paid by a manufacturing company is classified under which kind of activity while preparing cash flow statements?

Cash Flow from Financing Activities

The correct answer is option 2- Cash Flow from Financing Activities.

Dividend paid by a manufacturing company is classified under Cash Flow from Financing Activities while preparing cash flow statements Cash Flow from Financing Activities.

In case of a non-financial enterprise, as per AS-3, it is considered more appropriate that payment of interest and dividends are classified as financing activities whereas receipt of interest and dividends are classified as investing activities.