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Cash Flows from Financing Activities Hayashi, Inc. earned net income of $450,000 in 20x2. Hayashi provided the following information: Hayashi, Inc. Comparative Balance Sheets At
Cash Flows from Financing Activities Hayashi, Inc. earned net income of $450,000 in 20x2. Hayashi provided the following information: Hayashi, Inc. Comparative Balance Sheets At December 31, 20X1 and 20x2 20x1 20x2 Bonds payable 245,000 Mortgage payable 50,000 Common stock 187,500 187,500 Paid-in capital in excess of par 140,000 140,000 Retained earnings 912,500 1,162,500 Required: Compute the financing cash flows for the current year. Use a minus sign to indicate a cash outflow. Feedback Check My Work Financing cash inflows include cash from the issuance of long-term debt or capital stock. Retirement of debt or stock and payment of dividends produce cash outflows. Financing cash flows are calculated by finding the difference in the balances of long-term liabilities and equity unrelated to operating income. Retained Earnings (20X1) + Net Income - Retained Earnings (20X2) = Dividends Review the "How to Compute Financing Cash Flows" example in the text
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