The following transactions occurred last year at Dempsey Inc. Issuance of common stock $ 50,000 Dividends paid to common stockholders 3,000 Depreciation expense 6,000 Repayment of principal on the company's own bonds 40,000 Sale of equipment 17,000 Purchase of land 120,000 Based solely on the above information, the net cash flows from financing activities for the year on the statement of cash flows would be Select one:A) $249,000. B) $7,000. C) $ (103,000). D) $ (6,000).

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Wright

Business

11 June, 22:26

The following transactions occurred last year at Dempsey Inc. Issuance of common stock $ 50,000 Dividends paid to common stockholders 3,000 Depreciation expense 6,000 Repayment of principal on the company's own bonds 40,000 Sale of equipment 17,000 Purchase of land 120,000 Based solely on the above information, the net cash flows from financing activities for the year on the statement of cash flows would be Select one:A) $249,000. B) $7,000. C) $ (103,000). D) $ (6,000).

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Brewster · Answer 1

B) $7,000

Explanation:

Dempsey's financing activities include:

Issuance of common stock $50,000 Dividends paid to common stockholders $3,000 Repayment of principal on the company's own bonds $40,000

net cash flow from financing activities = $50,000 - $3,000 - $40,000 = $7,000