Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Novak Corporation, which follows IFRS and chooses to classify dividends paid as financing activities and interest paid as operating activities on the statement of cash
Novak Corporation, which follows IFRS and chooses to classify dividends paid as financing activities and interest paid as operating activities on the statement of cash flows, had the following activities in 2020. 1. Paid $869,000 of accounts payable. 2. Paid $10,300 of bank loan interest. 3. Issued common shares for $230,000. 4. Paid $183,000 in dividends (charged to retained earnings). 5. Collected $157,000 in notes receivable. 6. Issued $418,000 of bonds payable. 7. Paid $18,200 on bank loan principal. 8. Issued a stock dividend in the amount of $10,200. 9. Received $5,700 in interest from an investment in bonds. 10. Purchased the corporation's own shares at a cost of $53,000. Calculate the amount that Novak should report as net cash provided (used) by financing activities in its 2020 statement of cash flows. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Net cash provided by financing activities $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started