Question

Desiree Company's financial statements included the following amounts for the current year: Retired preferred stock $60,000 Loaned cash to key supplier 17,000 Dividends paid 23,000 Sold used delivery truck 44,000 Issued new bonds 71,000 Based on this information, what is the amount of net cash flows from financing activities

Answer 1

Answer:

$12,000 net outflow

Explanation:

Cash flows from financing activities

Particulars                                              Amount

Retired preferred stock                        $(60,000)

Dividends paid                                      $(23,000)

Issued new bonds                                 $71,000

Cash flows from financing activities  $(12,000)

So, the amount of net cash flows from financing activities is $12,000 net outflow.

Note: Loaned cash to key supplier 17,000 and Sold used delivery truck 44,000 are not part of cash flow from financing activities