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14 November, 03:07

During 2018, the cash flows related to Global Data, Inc.'s lending and borrowing activities are summarized as follows:

Cash lent to borrowers $129,600

Payment to retire bonds payable $361,500

Proceeds from borrowing at bank (note payable) $217,500

Interest received from borrowers $28,500

Interest payments made on bonds payable $39,000

Required:

On the basis of the above information alone, what is Global Data's net cash flow from financing activities?

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Answers (1)
  1. 14 November, 03:36
    0
    -$144,000

    Explanation:

    Cash flow from financing activities

    Payment to retire bonds payable - $361,500

    Proceeds from borrowing at bank (note payable) $217,500

    Net cash used by financing activities - $144,000

    The payment made to retired bond payable reflects the outflow of cash so we deducted it and the borrowing at bank is a cash inflow so we added it

    And, the rest items are not relevant. Hence, ignored it
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