George Corp

question 21

Essay

George 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 31,2016 included the following:
• Declared a $12,000 cash dividend payable on January 15,2017.
• Acquired an automobile costing $30,000 under a finance lease.
• Declared and issued a stock dividend valued at $15,000.
• Issued $330,000 in ordinary shares.
• Accounts payable increased $18,000 during the year.
• Paid $980,000 to repurchase bonds.The book value of the bonds was $1,010,000.
• Made a $15,000 principal payment on a bank loan.
• Interest expense for the period was $8,000.The interest payable account increased
$2,000.
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.

Realize the role of cash budgeting in financial management.

Apply theoretical knowledge in practical financial planning exercises.

Acknowledge the significance of short-term financing in managing cash flow.

Understand the process of multiplying expressions with their conjugates and the impact on simplification.

---

Definitions:

Approachable

being easy to approach or talk to; friendly and open to communication or contact.

Cooperative

Involving mutual assistance in working toward a common goal, characterized by the willingness of individuals to work together.

Impression Management

The process by which individuals attempt to control the perceptions others have of them, often to align with their own desired image.

Systematic Attempt

A methodical and organized effort to achieve a specific goal or solve a problem.