Question
Below are the transactions for the Clothesline Company (reporting under US GAAP): Proceeds from issuance of bonds payable $1,000,000 Payment to purchase equipment $475,000 Payment
Below are the transactions for the Clothesline Company (reporting under US GAAP):
Proceeds from issuance of bonds payable | $1,000,000 |
Payment to purchase equipment | $475,000 |
Payment of wages | $115,000 |
Payment of dividends | $375,000 |
Payment to pay off notes payable | $1,200,000 |
Based on these transactions, what is the net cash flow from financing activities?
A)$575,000 net cash provided by financing activities.
B)$575,000 net cash used for financing activities.
C)$0, because cash inflows equal cash outflows from financing activities.
D)$1,050,000 net cash used by financing activities.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started