Answer:
The answer is ($174,000)
Explanation:
Cash flows from financing activities show the inflow and outflow of cash that are used to fund the business's operations.
Cash flow from financing activities:
Issuance of common stock......................................$79,000
Payment of dividend........($13,000)
Settlement of notes payable.................................($125,000)
Payment for treasury stock.........…...........................................($115,000)
Net cash from financing activities...............................($174,000)
Answer:
775 units
Explanation:
By forecast,
June sales = 400 units
July sales = 700 units
if ending inventory equal to 125% of next month's sales
Then June's ending inventory = 125% × 700
= 875 units
May's ending inventory = 125% × 400
= 500 units
Opening inventory + production - sales = closing inventory
Using the formula above, where p = production
500 + p - 400 = 875
p = 875 - 100
p = 775
Production required for June is 775 units.