Question
Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions) Acquired $4,500 cash from
Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions)
Acquired $4,500 cash from issuing common stock.
Borrowed $2,950 from a bank.
Earned $3,850 of revenues. Incurred $2,550 in expenses.
Paid dividends of $550.
Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions)
Acquired an additional $1,250 cash from the issue of common stock. Repaid $1,825 of its debt to the bank.
Earned revenues, $5,250. Incurred expenses of $3,050.
Paid dividends of $1,540.
What was the net cash flow from financing activities reported on Lexington's statement of cash flows for Year 2?
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