Sir pls help me im finding it hard to understand
Scents had the following balances in its statement of finacial positions as at 30 September 2004 and 2005
Years .......................................... 2004........2005
Loan interest accural 5000........ 3000
Approved ordinary dividends 20000........ 25000
10% loan notes 100000........ 100000
Ordinary shares capital 150000........ 150000
8% Preference shares 50000........ 50000
How much will appear in the statement of cash flow for the year ended 30 September 2005 for the loan interest and preference dividend paid?
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Cashflows
10y ago#1I am sorry but it is difficult to follow because the tabbing does not appear well on our website.
Is there no answer in the book that you are using?
Yes it is 16000 but it doesn't make sense :(
10y ago#3The loan interest expense is 10% x 100,000 = 10,000.
Therefore the cash actually paid = 10,000 + 5,000 - 3,000 = 12,000
The preference dividend for the year is 8% x 50,000 = 4,000.
The total of the two is 16,000.
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