Haliburton Paddle Works Ltd., year 2: bank loan (current plus long-term) 120,000 → 100,000 with no new borrowing; common shares 120,000 → 150,000, of which 10,000 was issued for equipment; dividends declared 18,000; dividends payable 0 → 3,000. Complete the financing section, entering a use of cash as a negative number.
Haliburton Paddle Works Ltd., year 2: bank loan (current plus long-term) 120,000 → 100,000 with no new borrowing; common shares 120,000 → 150,000, of which 10,000 was issued for equipment; dividends declared 18,000; dividends payable 0 → 3,000. Complete the financing section, entering a use of cash as a negative number.
Answer
Repayment of bank loan → -20000 · Proceeds from issue of common shares → 20000 · Dividends paid → -15000 · Net cash used in financing activities → -15000
Cells - Repayment of bank loan · ±0 - Proceeds from issue of common shares · ±0 - Dividends paid · ±0 - Net cash used in financing activities · ±0 Loan 120,000 − 100,000 = **repaid 20,000**. Shares +30,000 less 10,000 for equipment = **20,000 cash**. Dividends paid = declared 18,000 − increase in payable 3,000 = **15,000**. Net: −20,000 + 20,000 − 15,000 = **−15,000**.
Hermanson Vol 1 ch 16 (the non-cash schedule); Lyryx Intermediate FA Vol 1 §4.3.2; Dauderis & Annand §11.2; ASPE s.1540 (concept map N9–N10)