Angela's Angels Corp

question 2

Essay

Angela's Angels Corp.'s policy is to report all cash inflows from interest and dividends in the investing section and cash outflows arising from interest and dividends in the financing section. Angela's activities for the year ended December 31, 2019 included the following:
• Declared and issued a stock dividend valued at $15,000.
• Issued $300,000 in ordinary shares.
• Accounts payable decreased $38,000 during the year.
• Paid $910,000 to repurchase bonds. The book value of the bonds was $1,000,000.
• Made a $25,000 principal payment on a bank loan.
• Interest expense for the period was $12,000. The interest payable account increased $2,000.
• Declared a $12,000 cash dividend payable on January 15, 2020.
• Acquired the right to use an automobile valued at $30,000 under a lease agreement.
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.

---

Definitions:

Ectoderm

The outermost of the three primary layers in an embryo, from which the skin, nervous system, and sense organs develop.

Germ Layer

One of the three primary layers of cells (ectoderm, mesoderm, and endoderm) in the very early embryo, from which all tissues and organs develop.

Digestive Tube

The tubular passage functioning in the digestion and absorption of food and the elimination of food residues, stretching from the mouth to the anus.

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, giving rise to the outer layer of skin, brain, and nervous system.