Question

Bramble Inc. reports under IFRS and has adopted the policy of classifying interest received as an...

Bramble Inc. reports under IFRS and has adopted the policy of classifying interest received as an investing activity. During 2020, Yang lent $30,400 to a key supplier in exchange for a two-year interest-bearing promissory note. Interest revenue earned on the note and recorded on the statement of income was in the amount of $600 and a balance of $200 for interest receivable was reported on the statement of financial position at December 31, 2020, relating to the note. Prepare Bramble’s cash flows from (used by) investing activities section of the statement of cash flows.

Homework Answers

Answer #1

Bramble Inc.

Cash flow from Investment Activities Amount
Issue of Note Receivable( Cash Outflow) $      -30,400
Interest Received On Note Receivable (Notes) $             400
Net Cash flow from Investment Activities $      -30,000

Notes

Interest Revenue Earned $             600
Less: Interest Receivable $            -200
Interest Received in cash $             400

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