Question

Brief Exercise 12-3 The following T-account is a summary of the Cash account of Cuellar Company. Cash (Summary Form) Balance, Jan. 1 8,000 Receipts from customers 364,000 Payments for goods 200,000 Dividends on stock investments 6,000 Payments for operating expenses 140,000 Proceeds from sale of equipment 36,000 Interest paid 10,000 Proceeds from issuance of Taxes paid 8,000 bonds payable 300,000 Dividends paid 50,000 Balance, Dec. 31 306,000 What amount of net cash provided (used) by financing activities should be reported in the statement of cash flows

Answer 1

Answer:

$240,000

Explanation:

According to IFRS,

Cash inflow from financing activities:

Proceeds from bond issue = $300,000

Cash outflow from financing activities:

= Dividend paid + Interest paid**

= $(50,000 + 10,000)

= $60,000

Net cash inflow (Cash provided) by financing activities:

= Cash inflow from financing activities - Cash outflow from financing activities

= ($300,000 - $60,000)

= $240,000

Under IFRS, Interest paid can be classified under financing (or operating) activities.