Calculate Cash Flows from Financing Activities The following transactions occurr

Question

Calculate Cash Flows from Financing Activities The following transactions occurred during the year:

Common stock was issued in exchange for a new heavy truck. A cash dividend of $18,800 was paid.

A 90-day note payable was issued for $6,000 cash.

$25,000 was paid to acquire the company's own common stock.

Depreciation expense for the year was $30,000. Bonds with a face value of $25,000 were issued at par.

Required: Use this information to compute cash flows from financing activities. Use a negative number (for example, -1,000) to indicate a cash outflow.

Explanation / Answer

Cash Flow From Financing Activities

Notes Payable = 6,000

Bonds Issue = 25,000

Dividend Paid = -18,800

= $12,200=Cash Flow From Financing Activities

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