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Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.) 1) Acquired $1,100 cash

Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)

  1. 1) Acquired $1,100 cash from the issue of common stock.
  2. 2) Borrowed $570 from a bank.
  3. 3) Earned $750 of revenues cash.
  4. 4) Paid expenses of $280.
  5. 5) Paid a $80 dividend.

During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.)

  1. 1) Issued an additional $475 of common stock.
  2. 2) Repaid $325 of its debt to the bank.
  3. 3) Earned revenues of $900 cash.
  4. 4) Incurred expenses of $420.
  5. 5) Paid dividends of $130.

What is the amount of Packard Company's net cash flow from financing activities for Year 2?

  • Net outflow of $455.

  • Net outflow of $325.

  • Net inflow of $345.

  • Net inflow of $20.

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