Using Excel to Prepare the Financing Activities Section of the Statement of Cash Flows PROBLEM Etienne Corporation reported the following information at December 31, 2024. Student Work Area Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work area as indicated. 2024 Dividends payable $ Bank loan payable - current portion 16,000 250,000 2023 $12,000 250,000 Bank loan payable - non-current portion 450,000 350,000 Common shares 620,000 410,000 Retained earnings 724,000 510,000 During 2024, Etienne Corporation's bank loan was increased by additional borrowings to partially finance the purchase of new equipment. The bank loan was decreased by repayments. Common shares were issued during the year, and none were repurchased. The company paid dividends during the year. Additional information is provided here. Additional borrowings in the bank loan Purchase of new equipment Net income for the year $ 300,000 500,000 400,000 Complete the financing activities section of Etienne's statement of cash flows for the year. Display cash outflows as negative amounts. Financing activities Payment of cash dividends Repayment of bank loan payable Issue of common shares
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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