Question

Vision Company purchased treasury stock with a cost of $16,000 during 2016. During the year, the company paid dividends of $20,000 and issued bonds payable for proceeds of $860,000.

Required:
a. Cash flows from financing activities for 2016 total _____________.

Answer 1

Answer: $ 824,000

Step-by-step explanation:

Cash flow statement of Vision Company for the year 2016

Cash inflow

Bonds payable $860000

Cash out flow

(-)Changes in working capital

Increase in stock $16000

(-)Cash for financing

Dividends paid $20000

Total cash flow from

financing activities $824,000

Cash flow statement shows the difference between the inflow and outflow of the financing activities.