Question

Selected information from Dinkel Company's 2011 accounting records is as follows: Proceeds from issuance of common stock $ 400,000 Proceeds from issuance of bonds 1,200,000 Cash dividends on common stock paid 160,000 Cash dividends on preferred stock paid 60,000 Purchases of treasury stock 120,000 Sale of stock to officers and employees not included above 100,000 Dinkel's statement of cash flows for the year ended December 31, 2011, would show net cash provided (used) by financing activities of

Answer 1

Answer:

Cash flow from financing activities is $2,040,000

Explanation:

Cash flow from financing activities

Inflows

Proceeds from common stock                     $400,000

Proceed from common stock(Employees)  $100,000

Issuance of bonds                                         $1,200,000 $1,700,000

Outflows

Cash dividend on common stock             $160,000

Cash dividend on preferred stock            $60,000

Purchase of treasury stock                        $120,000          340,000

Cash flow from financing activities                                  $2,040,000