Question

Additional short-term borrowings $ 56,000 Purchase of short-term stock investments 14,200 Cash dividends paid $ 45,600 Interest paid 22,800 Compute cash flows from financing activities using the above company informatio

Answer 1

Answer:

Cash Flows From Financing Activities  is $10,400

Explanation:

                       Particulars                            Amount

Additional Short Term Borrowing             $56,000

Cash Dividends Paid                                (-$45,600)

Cash Flows From Financing Activities    $10,400

We need to observe that the Purchase of Short Term Investments and Interest Paid are Classified as Operating Activities in the Cash Flow Statement., hence the exclusion in the computation above.