Question
Common stock transactions on the statement of cash flows Jones Industries received $600,000 from issuing shares of its common stock and $400,000 from issuing bonds.
Common stock transactions on the statement of cash flows
Jones Industries received $600,000 from issuing shares of its common stock and $400,000 from issuing bonds. During the year, Jones Industries also paid dividends of $60,000. How are the effects of these transactions reported on the statement of cash flows? Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required. If a transaction has no effect on the statement of cash flows, select "No effect" from the drop down menu and leave the amount box blank.
Transactions | Action | Amount |
Cash received from issuing common stock | Added to net incomeDeducted from net incomeNo effectPart of cash flows from financing activities Part of cash flows from investing activitiesPart of cash flows from operating activitiesPart of cash flows from financing activities | $fill in the blank 2 |
Cash received from issuing bonds | Added to net incomeDeducted from net incomeNo effectPart of cash flows from financing activities Part of cash flows from investing activitiesPart of cash flows from operating activitiesPart of cash flows from financing activities | $fill in the blank 4 |
Cash paid for dividends | Added to net incomeDeducted from net incomeNo effectPart of cash flows from financing activities Part of cash flows from investing activitiesPart of cash flows from operating activitiesPart of cash flows from financing activities | $fill in the blank 6 |
Feedback Area
Recall the definitions of each section of the statement of cash flows. What type of activities arises from issuing long-term debt or equity securities? Are the activities cash inflows or cash outflows?
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