option d is outflow 24,000 Yi Company began operations on January 1, 2013. Durin

Question

option d is outflow 24,000

Yi Company began operations on January 1, 2013. During 2013, the company engaged in the following cash transactions: 1) issued stock for $58,000 2) borrowed $34,000 from its bank 3) provided consulting services for $56,000 4) paid back $24,000 of the bank loan 5) paid rent expense for $13,500 6) purchased equipment costing $21,000 7 paid $3,900 dividends to stockholders 8) paid employees salaries, $30,000 What is Yi's cash flow from financing activities? Multiple Choice Inflow of $54,100 Outtlow of $3.900 edow of $64,200

Explanation / Answer

The answer is option A I.e, Inflow of $ 54,100 I.e, (58,000-3,900).

In the given question, only two transactions related to financing activities can be observed I.e, 1 st point, Issued stock for $58,000 and it is inflow of cash and the next item is 7 th point ,I.e, Paid $3,900 dividend to stockholders.

The net result is inflow of $54,100 which is option A in.the options available for answers and it will be the right answer.

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