Smiley Corp.\'s transactions for the year ended December 31, 2015 included the f

Question

Smiley Corp.'s transactions for the year ended December 31, 2015 included the following Purchased real estate for $625,000 cash which was borrowed from a bank. Sold available-for-sale securities for $500,000. Paid dividends of $600,000. Issued 500 shares of common stock for $458.000. Purchased machinery and equipment for $125,0 ca Paid $450,000 toward a bank loan. Reduced accounts receivable by $100,000. Increased accounts payable $200,000. Smiley's net cash used in financing activities for 2015 was

Explanation / Answer

A category in a company’s cash flow statement that accounts for external activities that allow a firm to raise capital and repay investors, such as issuing cash dividends, adding or changing loans or issuing more stock. Cash flow from financing activities shows investors the company’s financial strength.

cash flows from financing activities include the following basic components:

Cash flow from financing activities:

Borrowings from a bank 625000 cash received from issuance of common stock 250000 Repayment of bank loan -450000 Cash Flow from financing activities 425000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.