Question

Tamarisk, Inc. issued 20800 shares of $1 par common stock for $40 per share during 2022. The company paid dividends of $50000 and issued long-term notes payable of $458000 during the year. What amount of cash flows from financing activities will be reported on the statement of cash flows

Answer 1

$1,240,000

Step-by-step explanation:

Calculation to determine the amount of cash flows from financing activities will be reported on the statement of cash flows

Cash flow from Financing activities

Issue of common stock $832,000

(20800 shares × $40)

Add Issued of long term notes payable $458,000

Less: Dividend paid -$50,000

Net Cash flow from Financing activities $1,240,000

Therefore the amount of cash flows from financing activities will be reported on the statement of cash flows is $1,240,000