Which of the following are the application of funds ? (i) Redemption of Preference share capital. (ii)…

In a Statement of Sources and Applications of Funds (Funds Flow Statement), Redemption of Preference Share Capital (i) and Payment of Dividend (ii) represent direct outflows (applications) of working capital, and a net Increase in Working Capital (iii) is also shown on the Applications of Funds side to balance total sources with total uses of funds. Hence, (i), (ii) and (iii) appear under applications of funds.