Question

The End Co issued preferred stock for proceeds of $19,000 during 2014. The company paid dividends of $3,500 on the preferred stock. The company issued a long-term note payable for $75,000 in exchange for a building during the year and bought $16,000 of new equipment. The company also purchased treasury stock for $5,000. The financing section of the statement of cash flows will report net cash inflows of

Answer 1

Answer:

The financing section of the statement of cash flows will report net cash inflows of  $10,500

Explanation:

The financing section of the statement of cash flows shows results of cash resulting from capital invested by owners, debt issued and repayments to capital and debt.

Cash Flow from Financing Activities

Preferred Stock Issued                                                        $19,000

Dividends Paid                                                                     ($3,500)

Treasury Stock Purchased                                                  ($5,000)

Net Cash Provided by Financing Activities                        $10,500