Question

Additional short-term borrowings $20,000

Purchase of short-term stock investments 5,100
Cash dividends paid $16,400
Interest paid 8,200

Compute cash flows from financing activities using the above company information. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Cash provided by the financing activities $3,600

Step-by-step explanation:

The computation of the cash flows from financing activities is as follows;

Cash flows from financing activities

Additional short-term borrowings $20,000

Less cash dividend paid -$16,400

Cash provided by the financing activities $3,600

The purchase of short term stock should be shown in the investing activities while on the other hand the interest paid is to be shown in the operating activities