Cash Flows from Financing Activities

Murray Company earned net income of $450,000 in 20X2. Murray provided the following information:

Murray Company

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.