Net income was $469,000. Issued common stock for $76,000 cash. Paid cash dividend of $14,000. Paid $115,000 cash to settle a note payable at its $115,000 maturity value. Paid $124,000 cash to acquire its treasury stock. Purchased equipment for $90,000 cash. Use the above information to determine this company's cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.)

Question

Pablo Miles

Business

5 November, 21:05

Net income was $469,000. Issued common stock for $76,000 cash. Paid cash dividend of $14,000. Paid $115,000 cash to settle a note payable at its $115,000 maturity value. Paid $124,000 cash to acquire its treasury stock. Purchased equipment for $90,000 cash. Use the above information to determine this company's cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.)

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Layne Braun · Answer 1

The company's cash flows from financing activities is ($177,000).

Explanation:

The company

Statement of cash flows (extract)

Proceed from issue of common stock $76,000

Dividends paid ($14,000)

Repayment of note payable ($115,000)

Purchase of treasury stock ($124,000)

Net cash flows from financing activities ($177,000)