Question

Burich Company reported short-term borrowings of $4.00 million, long-term borrowings of $6.95 million, repayments of long-term borrowings of $4.25 million, interest payments of $781,500, purchase of common stock shares for treasury of $2.00 million, and cash dividends declared of $4.85 million. What is the cash flow from financing activities

Answer 1

$4,70,000 is the cash flow from financing activities.

What are financial activities?

• Transactions involving owner equity, long-term liabilities, and adjustments to short-term loans are referred to as financing operations.
• The transfer of cash and cash equivalents between the organization and its financial sources is considered a financing activity.
• Let's examine financial operations in further detail.

What are the 3 financing activities?

• Cash transactions involving owners' equity and noncurrent liabilities are considered financing activities.
• The principal amount of long-term debt, stock sales and repurchases, and dividend payments are examples of noncurrent liabilities and owners' equity items.

Why is financing activities important?

• Both investors and debt suppliers for the company need to know specifics about financing activities.
• The enterprise's financial efficiency is determined by reflecting these actions.
• It demonstrates the organization's capacity for fund-raising and money management.

According to the question:

= Short-term borrowings $4.00 million inflow + Long-term borrowings $6.95 million inflow - Long-term repayments $ (4.25) million inflow - Treasury stock purchases $ (2.00 ) million inflow.

=  $4.00 + $6.95 - $4.25 - $2.00.

= $ 4.7 million.

Net financing cash inflow $ 4.7 million inflow.

Learn more about financing activities here:

brainly.com/question/735261

#SPJ4