Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Peanut, Inc. went into business on August 1, 2020. During the remaining five months of 2020, here are some of Peanut's transactions: Aug. 1, 2020
Peanut, Inc. went into business on August 1, 2020. During the remaining five months of 2020, here are some of Peanut's transactions:
- Aug. 1, 2020 - Issued stock for a total of $10,000.
- Sept. 1, 2020 - Borrowed $12,000 from the bank. Peanut will make no payments on this loan until Sept. 1, 2022, and at that time, it will owe $12,600.
- Oct. 18, 2020 - Purchased $8,000 of inventory on account.
- Dec. 17, 2020 - Paid accounts payable.
- Dec. 31, 2020 - Paid a dividend of $4,000.
How much were Peanut's financing cash flows during 2020?
Group of answer choices
$6,000
$8,000
$18,000
$22,000
None of the above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started