Question

A. Net income was $471,000.

b. Issued common stock for $74,000 cash.
c. Paid cash dividend of $11,000.
d. Paid $130,000 cash to settle a note payable at its $130,000 maturity value.
e. Paid $122,000 cash to acquire its treasury stock.
f. Purchased equipment for $91,000 cash.

Use the above information to determine cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.)

Answer 1

-$189,000

Step-by-step explanation:

Calculation to determine the cash flows from financing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Issued common stock for cash $74,000

Less Paid cash dividend ($11,000)

Less Paid cash to settle a note payable ($130,000)

Less Paid cash to acquire its treasury stock ($122,000)

Cash flows from financing activities -$189,000

Therefore the Cash flows from financing activities is -$189,000