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Assuming the company uses US GAAP standards, what is the total cash flow from financing activities?

1 Answer

2 votes

Answer:

$30

Step-by-step explanation:

The cash flows from financing activities will include:

+ issuance of preferred stock

+ issuance of bonds

- paid off long-term bank borrowings

- repurchase of common stock

- dividends paid

cash flows from financial activities = $35 + $50 - $15 - $30 - $10 = $30

The $45 resulting from the debt retired through issuance of common stock was not a financial operation, therefore it is not included in the cash flow form financial activities.

User Sam Varshavchik
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