Question

The following events occurred last year for the Bronze Company: Purchase of treasury stock $50,000 Issuance of common stock 90,000 Payment of dividends to common stockholders 10,000 Sale of equipment 17,000 Considering only the above transactions, the net cash flow from financing activities on the statement of cash flows was:

Answer 1

Answer:

Net Cash Flow from Financing Activities                    $150,000

Explanation:

Data provided in the question:

Purchase of treasury stock = $50,000

Issuance of common stock = 90,000

Payment of dividends to common stockholders = 10,000

Sale of equipment = 17,000

Now,

Net cash flow from financing activities will be

Issuance of common stock                                         $90,000

Purchase of treasury stock                                          $50,000

Payment of dividends to common stockholders       $10,000

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Net Cash Flow from Financing Activities                    $150,000

Note: Sales of equipment is not included in financing activity