Ace Inc. declared and distributed a 10% stock dividend during the year. Explain how, if at all,

Question:

Ace Inc. declared and distributed a 10% stock during the year. Explain how, if at all, you think this transaction should be reported on a statement of cash flows.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...