Answer:
The net cash flow provided by financing activities is: $840,000
Explanation:
Prepare the Cash flow from Financing Activities Section as follows :
Cash flow from Financing Activities
Proceeds from Issue of Shares $2,800,000
Dividends Paid ($560,000)
New Bond Issue $4,200,000
Bond Paid off ($5,600,000)
Net Cash flow from Financing Activities $840,000
<em>Note that the Bonds bought of another company constitutes investment activities of Blair Madison Co. thus excluded from Cash Flow from Financing Activities Calculation.</em>
