Question

Use the following information to determine this company's cash flows from financing activities.

a. Net income was $473,000. Issued common stock for $70,000 cash. Paid cash dividend of $15,000. Paid $120,000 cash to settle a note payable at its $120,000 maturity value. Paid $125,000 cash to acquire its treasury stock. Purchased equipment for $93,000 cash.

Answer 1

Please see the answer below:

Step-by-step explanation:

CASH FLOW FROM FINANCING ACTIVITIES:

Issued common stock $70,000

Paid cash dividend ($15,000)

Paid Note Payable ($120,000)

Payment of Treasury Stock ($125,000)

Net Cash Inflow (Outflow) from Financing Activities ($190,000)