Question

APS Company issued 20,000 shares of $1 par common stock for $40 per share during 2017. The company paid dividends of $48,000 and issued long-term notes payable of $440,000 during the year. What amount of cash flows from financing activities will be reported on the statement of cash flows?

Answer 1

$1,192,000

Step-by-step explanation:

The computation of the amount of cash flows from financing activities is shown below:

Cash flow from Financing activities

Issue of common stock $800,000 (20,000 shares × $40)

Issued of long term notes payable $440,000

Less: Dividend paid -$48,000

Net Cash flow from Financing activities $1,192,000