Question

Selected information from Jacklyn Hyde Corporation's accounting records and financial statements for 2021 is as follows ($ in millions): Cash paid to retire notes $ 94 Common shares acquired for treasury 154 Proceeds from issuance of preferred stock 218 Proceeds from issuance of subordinated bonds 274 Cash dividends paid on preferred stock 77 Cash interest paid to bondholders 107 In its statement of cash flows, Jacklyn Hyde should report net cash inflows from financing activities of: Multiple Choice $325 million. $167 million. $218 million. $64 million.

Answer 1

Jacklyn Hyde Corporation's net cash inflows from financing activities for 2021 is calculated by summing the proceeds from the issuance of preferred stock and subordinated bonds and then subtracting the cash paid to retire notes, acquisition of common shares for treasury, and cash dividends paid on preferred stock, which results in $167 million.

Step-by-step explanation:

To calculate the net cash inflows from financing activities for Jacklyn Hyde Corporation, we need to consider the inflows and outflows in the financing activities section of the cash flow statement. Cash inflows include the proceeds from the issuance of preferred stock and subordinated bonds, and the outflows include cash paid to retire notes, the acquisition of common shares for treasury, and cash dividends paid on preferred stock.

The calculations would be as follows:

Proceeds from issuance of preferred stock: $218 million

Proceeds from issuance of subordinated bonds: $274 million

Cash paid to retire notes: -$94 million

Common shares acquired for treasury: -$154 million

Cash dividends paid on preferred stock: -$77 million

Cash interest paid to bondholders: This would typically be considered an operating activity, not a financing activity, so we do not include it here.

Adding the inflows and subtracting the outflows gives us:

($218 million + $274 million) - ($94 million + $154 million + $77 million) = $167 million

Answer 2

$167 million

Step-by-step explanation:

Particulars Amount ($ millions)

Cash paid to retire note -94

Less: Common shares acquired for treasury -154

Add: Proceeds from issue of preferred stock 218

Add: Proceeds from issue of subordinated bonds 274

Less: Cash dividends paid on preferred stock -77

Net cash from financing activities 167

Note: Cash interest paid to bondholders belongs to Operating activity