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At the most recent strategic planning meeting, the board of directors of Target

ID: 2424354 • Letter: A

Question

At the most recent strategic planning meeting, the board of directors of Target Corporation has voted to issue additional stock to raise capital for major expansions for the company in the next five years. The board is considering $5 million. The CEO requests that you prepare a written report (including the financial statements) for her.

What would be the impact on the cash flow statement based on the given scenario if we were to raise capital by $5 million? What affects would it have on this statement?

Explanation / Answer

net cash flow from finaning activity will increase by $5million.