Question

Selected information from Jacklyn Hyde Corporation's accounting records and financial statements for 2021 is as follows ($ in millions): Cash paid to retire bonds $ 30 Treasury stock purchased for cash 50 Proceeds from issuance of common stock 70 Proceeds from issuance of mortgage bonds 90 Cash dividends paid on common stock 25 Cash interest paid to bondholders 35 On its statement of cash flows, Jacklyn Hyde should report net cash inflows from financing activities of ______

Answer 1

The net cash inflows from financing activities for Jacklyn Hyde Corporation is $55 million, calculated by subtracting the total cash outflows for financing activities ($105 million) from the total cash inflows ($160 million).

Step-by-step explanation:

The student asks about the net cash inflows from financing activities for Jacklyn Hyde Corporation. To calculate this, we need to consider all transactions that involve the company's financing: cash paid to retire bonds, treasury stock purchases, issuance of common stock, issuance of mortgage bonds, and cash dividends paid. Inflows from financing activities include proceeds from the issuance of common stock ($70 million) and mortgage bonds ($90 million), totaling $160 million. Outflows include cash paid to retire bonds ($30 million), treasury stock purchased ($50 million), and dividends paid on common stock ($25 million), totaling $105 million.

To find the net cash inflows from financing activities, we subtract the total outflows from the total inflows: $160 million - $105 million = $55 million net inflow.