Question

company a had the following transactions during 2021: issued $50,000 of common stock for cash. declared and paid a cash dividend of $7,000. accounts receivable balance decreased by $3,000. reported $6,000 depreciation expense for a car. what is the net cash inflow provided by financing activities? group of answer choices $7,000 $50,000 $43,000 $9,000

Answer 1

The net cash inflow provided by financing activities for the company in 2021 is $43,000, calculated by subtracting the cash dividends paid from the cash raised through issuing common stock.

Step-by-step explanation:

The student asked about the net cash inflow provided by financing activities for a given company in the year 2021. The transactions listed were the issuance of $50,000 of common stock for cash and the declaration and payment of a $7,000 cash dividend. The net cash inflow from financing activities would be calculated as the cash raised from issuing stock minus the cash paid out as dividends.

Therefore, the net cash inflow from financing activities would be $50,000 (cash from issuing stock) minus $7,000 (dividends paid), totaling $43,000. The other details provided, such as the decrease in accounts receivable and the depreciation expense, are not relevant to the calculation of cash flow from financing activities.