Lavern Company experienced the following during 2009: a. Sold preferred stock for $392,000. b. Declared dividends of

Question:

Lavern Company experienced the following during 2009:
a. Sold preferred stock for $392,000.
b. Declared dividends of $100,000 payable on March 1, 2010.
c. Borrowed $480,000 from bank on a two-year note.
d. Purchased $50,000 of its own to hold as treasury stock.
e. Repaid five-year bonds issued in 2002 for $300,000 due in December.

Required:
Prepare the net cash flow from financing activities of the statement of cash flows.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...