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26 July, 19:09

Indicate which of the following has an effect on financing cash flows.

a. Notes payable with a carrying value of $16,600 are retired for $18,400 cash, resulting in a $1,800 loss.

b. Paid cash dividends of $12,600 to common stockholders.

c. Acquired $21,600 worth of machinery in exchange for common stock.

Items Amount Effect on financing cash flows

a. Notes payable

b. Dividends

c. Machinery

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Answers (1)
  1. 26 July, 19:32
    0
    Item Amount Effect

    A. Notes Payable ($16,600) Decrease

    B. Dividends ($1,800) Decrease

    C. Machinery $ 21,600 or $ 0 No effect

    Explanation:

    Indicating the items that has an effect on financing cash flows

    Item Amount Effect

    A. Notes Payable ($16,600) Decrease

    Because the cash are repaid

    B. Dividends ($1,800) Decrease

    Because the Dividend are been paid out in cash

    C. Machinery $ 21,600 or $ 0 No effect

    No effect because it is a non cash activity.
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