Question

Abbott, Inc., issued $50,000 of bonds, paid cash dividends of $8,000, sold long-term investments for $12,000, received $5,000 of dividend revenue, purchased treasury stock for $5,000, and purchased new equipment for $19,000. What is the net cash flow from financing activities?
a. $70,000 inflow.
b. $27,000 inflow.
c. $90,000 inflow.
d. $20,000 outflow.

Answer 1

Answer:

$27,000

Explanation:

            Cash flow from financing activities

Particulars                                     Amount

Bond issued                                  $50,000

Less: Cash dividend payment      $8,000

Less: Treasury stock purchase     $15,000

Net cash-flow from financing      $27,000

activities