Question

During 2018, T Company engaged in the following activities: Distribution of cash dividends declared in 2017 $ 48 Fair value of shares issued in a stock dividend 220 Payment to retire bonds 452 Proceeds from the sale of treasury stock (cost: $52) 60 In T's statement of cash flows, what were net cash outflows from financing activities for 2018

Answer 1

$440

Step-by-step explanation:

First and foremost the financing activities hinted in the question are as follows:

Distribution of cash dividends declared in 2017 $ 48(outflow)

Payment to retire bonds $452(outflow)

Proceeds from the sale of treasury stock (cost: $52) $60(inflow)

net cash outflows from financing activities=-$48-$452+$60

net cash outflows from financing activities=-$440