Question

Bad Brad's BBQ had cash flows for the year as follows ($ in millions): CASH RECEIVED FROM: Customers $ 3,100 Interest on investments 220 Sale of land 110 Sale of common stock 550 Issuance of debt securities 2,500 CASH PAID FOR: Interest on debt $ 320 Income tax 150 Debt principal reduction 1,450 Purchase of equipment 4,400 Purchase of inventory 900 Dividends on common stock 190 Operating expenses 800 Bad Brad's would report net cash inflows (outflows) from financing activities in the amount of: Multiple Choice $1,520. $(1,520). $1,260. $1,410.

Answer 1

Answer:

Net cash inflow from financing activities $1,410

Explanation:

The computation of the net cash inflows or outflows from financing activities is shown below

Cash flow from financing activities

Sale of common stock $550

Issuance of debt securities $2,500

Less debt principal reduction -$1,450

Less dividend on common stock  -$190

Net cash inflow from financing activities $1,410

Hence, the last option is correct