Novak Corp. issued 24400 shares of $1 par common stock for $40 per share during 2022. The company paid dividends of $59000 and issued long-term notes payable of $537000 during the year. What amount of cash flows from financing activities will be reported on the statement of cash flows

Question

Goblin

Business

14 December, 04:51

Novak Corp. issued 24400 shares of $1 par common stock for $40 per share during 2022. The company paid dividends of $59000 and issued long-term notes payable of $537000 during the year. What amount of cash flows from financing activities will be reported on the statement of cash flows

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Answers (1)

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Misty · Answer 1

The amount of cash flow that will be reported from Financing activities is $1,454,000 Net cash Inflow

Explanation:

Computation of Novak Corporation cash flows from Financing Activities.

Particulars Amount

Cash Inflow from issue of Common stock $976,000

(24,400 * $40)

Cash Inflow from issue of Notes Payable $537,000

$1,513,000

Less: Dividends Paid (-$59,000)

Net cash Inflow from Financing Activities $1,454,000