Question

Computing cash flows from financing LO P3 Additional short-term borrowings $ 20,000 Purchase of short-term investments 5,000 Cash dividends paid 16,000 Interest paid 8,000 Compute cash flows from financing activities using the above company information. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Answer:

Cash flows from Financing Activities $4,000

Explanation:

Computation of cash flows from financing activities

Additional short-term borrowings $20,000

Less Cash dividend paid ($16,000)

Cash flows from Financing Activities $4,000

Therefore the Cash flows from Financing Activities will be $4,000.