- This topic has 1 reply, 2 voices, and was last updated 10 years ago by
.
- Posts
I am doing a cashflow question
Addition information given in the question is
On 1st oct the company issued 60,000 $1 ordindary shares at par. The proceeds were used to finance the purchase and cancellation of all its 10% loans and some of its 5% loan notes at par.
Ordinary shares of the company
2009 2010
300 360
Non current liabilities
10%loan notes 2009 2010
50
5%loan notes 349 329Is it correct to recorded share issue of 60 as an inflow in the financing activities.
Also loan notes of I recorded as outflow of 50 for 10 %loan notes and out flow of 5% loan notes of 10 . However I am confused. As this seem as I in and out of 60 therefore having no effect on cashflow.
can you please confirm if what I did was correct
thank you
- You must be logged in to reply to this topic.