Question

During 2018, ABC had the following cash flows: received cash of $5,000 billed to a customer in 2017; earned $20,000 of net income; paid interest of $6,000 on a corporate bond issued; paid dividends of $8,000 to its stockholders; borrowed $40,000 from a local bank; purchased its own shares of common stock for $10,000. What is ABC's net cash flows from financing activities for 2018?

Answer 1

Cash flow from financing Activities $22,000

Step-by-step explanation:

Financial activities Cash flow

Particulars Amount

Dividends Paid -$8,000

Borrowing from Bank $40,000

Stock Repurchased -$10,000

Cash flow from financing Activities $22,000