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Boboto Inc.'s policy is to report all cash flows arising from interest and dividends in the operating section. Boboto's activities for the year ended December 31, 2021 included the following:
• Declared and issued a stock dividend valued at $50,000.
• Paid $46,000 to repurchase ordinary shares and cancelled them. The book value was $33,000.
• Accounts payable decreased $23,000 during the year.
• Issued $1,500,000 in bonds. The cash proceeds were $1,410,000.
• Interest expense for the period was $10,000. The interest payable account decreased $4,000.
• Made a $75,000 principal payment on a bank loan.
• Declared a $15,000 cash dividend payable on January 15, 2022.
Required:
a. Prepare the cash flows from financing activities section of the statement of cash flows.
b. Identify how the activities listed above that are not financing activities would be reported in the statement of cash flows assuming that the statement is prepared using the indirect method.
Moral Judgments
Evaluations or decisions about the rightness or wrongness of actions, often guided by societal norms and personal values.
Psychological Reasoning
Psychological reasoning involves the process of using logical, rational thinking and mental activities to understand human behavior and cognitive processes.
Moral Intuitions
Immediate, gut-level feelings that guide judgments of right and wrong without conscious reasoning.
Automatic Unconscious Thinking
Mental processes that occur without conscious awareness or effort, often guiding behaviors and decisions with minimal awareness.
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