During the current year, XYZ Corporation had the following activities related to financial operations: Payment for the early retirement of bonds payable (carrying amount, P7,400,000) 7,500,000 Distribution of cash dividend in the current year to preferred shareholders (declared in prior year) 620,000 5,200,000 Proceeds from sale of ordinary shares Proceeds from reissuance of treasury shares (cost, P860,000) 950,000 In the statement of cash flows for the current year, what amount should be reported as net cash used in financing activities? (Indicate if provided or used)

During the current year, XYZ Corporation had the following activities related to financial operations: Payment for the early retirement of bonds payable (carrying amount, P7,400,000) 7,500,000 Distribution of cash dividend in the current year to preferred shareholders (declared in prior year) 620,000 5,200,000 Proceeds from sale of ordinary shares Proceeds from reissuance of treasury shares (cost, P860,000) 950,000 In the statement of cash flows for the current year, what amount should be reported as net cash used in financing activities? (Indicate if provided or used)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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During the year, an entity had the following activities: Payment for the early payment of long-term bonds payable of P5,000,000 4,000,000 Payment of cash dividend declared in prior year 2,000,000 Preference share capital converted into ordinary share capital 1,000,000 Proceeds from sale of treasury shares (cost of treasury shares P1,000,000) 1,500,000 What amount should be reported as net cash used in financing activities? a. 4,500,000 b. 3,500,000 c. 2,500,000 d. 5,500,000
A Company provided the following data for the current year: Gain on sale of equipment – P60,000; Proceeds from sale of equipment – P100,000; Purchase of bonds with P2,000,000 face value – P1,800,000; Amortization of bond discount – P20,000; Dividends declared – P450,000; Dividends paid – P380,000; Proceeds from sale of treasury shares (at cost P650,000) – P750,000 What amount should be reported as net cash used in investing activities? [A] 1,700,000 [B] 1,760,000 [C] 1,880,000 [D] 1,940,000
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