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11 November, 20:58

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

a. Notes payable with a carrying value of $17,200 are retired for $19,300 cash, resulting in a $2,100 loss.

b. Paid cash dividends of $13,200 to common stockholders.

c. Acquired $22,200 worth of machinery in exchange for common stock.

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  1. 11 November, 21:02
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    b. Paid cash dividends of $13,200 to common stockholders.

    Explanation:

    Cash flows from financing is the cash gained or spent from raising capital or paying it's investors. It primarily measured flow of cash between a business and its owners and creditors.

    Includes the following activities: paying dividends, obtaining loans, issuing and selling stock, repurchasing stocks, and paying long-term debt.

    Positive cash flows from financing means the firm gets inflow of cash while negative flow means firm gives out cash.

    Paying dividends to stockholders is a financing activity that involves outflow of cash from the firm to its owners.
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Home » Business » Indicate which of the following has an effect on financing cash flows. a. Notes payable with a carrying value of $17,200 are retired for $19,300 cash, resulting in a $2,100 loss. b. Paid cash dividends of $13,200 to common stockholders. c.
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