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The following events occurred last year for the McElroy Company: Repayment to Mc

ID: 2483151 • Letter: T

Question

The following events occurred last year for the McElroy Company:

Repayment to McElroy of a loan made to another company

$20,000

Repurchase by McElroy of its preferred stock

30,000

Sale by McElroy of its common stock

50,000

Interest paid on McElroy's long-term borrowing

5,000

Payment of dividends to its common stockholders

15,000

Sale by McElroy of its used equipment

10,000

Considering just the above transactions, the net cash provided by financing activities on the statement of cash flows was: (show your work)

Repayment to McElroy of a loan made to another company

$20,000

Repurchase by McElroy of its preferred stock

30,000

Sale by McElroy of its common stock

50,000

Interest paid on McElroy's long-term borrowing

5,000

Payment of dividends to its common stockholders

15,000

Sale by McElroy of its used equipment

10,000

Explanation / Answer

McElroy Company

Cash flows from Financing activities:

Repayment to MCElroy of a loan made to another company 20000

Sale by McElroy of its common stock 50000

Interest paid on McElroy's long term borrowings (5000)

Payment to dividends to its common stockholders (15000)

Net cash flows from financing activities 50000.

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