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Please help me with this exercise I dont understand why in the solution(Chegg), Decrease in dividend payable is in Operating activities cashflow but Increase in
Please help me with this exercise I dont understand why in the solution(Chegg), "Decrease in dividend payable" is in Operating activities cashflow but "Increase in Bonds Payable" is in Financing Activities ? )(i dont know whether the solution is right or wrong ,but i really confused,i know bonds is in financing but why dividend payable is in operating? Please help me solve this exercise LJU LO4 Net Cash Flows (Indirect Method) Given the following selected data for Milton Corporation and using the indirect method to report cash flows from operating activities, determine the net increase (decrease) in cash for the year ended December 31, 2012 E 13-31 Net income Depreciation ................. Other operating expenses........ Cost of goods sold.......... Sales revenue .............. Increase in accounts receivable (net). Decrease in accounts payable Decrease in inventory............ Increase in prepaid assets .......... Increase in wages payable ....... Equipment purchased for cash $ 95,000 25,000 140,000 240,000 500,000 10,000 5,000 3,000 7,000 15,000 40,000 (continued) 647 Statement of Cash Flows Chapter 13 Increase in bonds payable........ Dividends declared and paid ......... Decrease in dividends payable.................................. $100,000 40,000 2,000
Please help me with this exercise
I dont understand why in the solution(Chegg), "Decrease in dividend payable" is in Operating activities cashflow but "Increase in Bonds Payable" is in Financing Activities ? )(i dont know whether the solution is right or wrong ,but i really confused,i know bonds is in financing but why dividend payable is in operating?
Please help me solve this exercise
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