Question

The following 2017 financial information pertains to Koosman Konsulting, established January 1, 2017. 1. Started company by selling $250,000 of common stock on January 1, 2017. 2. Invested $100,000 cash in an office building and computer systems in 2017. 3. Generated and collected revenues of $125,000 cash in 2017 by providing consulting services. 4. Paid all $80,000 of expenses in cash in 2017 5. Paid a $10,000 cash dividend in 2017 What were Koosman's cash flows for financing activities in 20177
A $10,000
B $125,000
C $250,000
D $240,000

Answer 1

Answer: $240000

Explanation:

Based on the information given in the question, Koosman's cash flows for financing activities in 2017 will be calculated as:

Sale of common stock = $250000

Less: Cash dividend paid = $10000

Cash flow from financing activities = $240000