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During the year, Next Tec Corp. had the following cash flows: receipt from customers, $11,000; receipt from the bank for long-term borrowing, $6,400; payment to suppliers, $5,300; payment of dividends;
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During the year, Next Tec Corp. had the following cash flows: receipt from customers, $11,000; receipt from the bank for long-term borrowing, $6,400; payment to suppliers, $5,300; payment of dividends; $1,700, payment to workers, $2,400; and payment for machinery, $8,500. What amount would be reported for net financing cash flows in the statement of cash flows

User Atacan
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15 votes
15 votes

Answer: $4,700

Step-by-step explanation:

Financing Cashflows are those that relate with the capital of the company including Equity and debt. Dividends are payments to shareholders (equity) so fall here as well.

Net Financing Cashflows = Inflows - Outflows

= Receipt from the bank for long-term borrowing - Payment of dividends

= 6,400 - 1,700

= $4,700

User Arkanoid
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