During 2021, Melanie Company has the following activities related to its financial operations: Payment for the early retirement of long-term bonds payable (carrying amount of bonds payable, P5,000,000) P4,000,000 Payment in 2021 cash dividend declared in 2020 2,000,000 Carrying amount of convertible preference share capital converted into ordinary share capital 1,000,000 Proceeds from sale of treasury shares (cost, P1,000,000) 1,500,000 What should be reported as net cash used in financing activities in 2021?

During 2021, Melanie Company has the following activities related to its financial operations: Payment for the early retirement of long-term bonds payable (carrying amount of bonds payable, P5,000,000) P4,000,000 Payment in 2021 cash dividend declared in 2020 2,000,000 Carrying amount of convertible preference share capital converted into ordinary share capital 1,000,000 Proceeds from sale of treasury shares (cost, P1,000,000) 1,500,000 What should be reported as net cash used in financing activities in 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

During 2021, Melanie Company has the following activities related to its financial
operations:
Payment for the early retirement of long-term bonds payable (carrying amount of bonds payable, P5,000,000)
P4,000,000
Payment in 2021 cash dividend declared in 2020
2,000,000
Carrying amount of convertible preference share capital converted into ordinary share capital
1,000,000
Proceeds from sale of treasury shares (cost, P1,000,000)
1,500,000
What should be reported as net cash used in financing activities in 2021?

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