La Paz Company engaged in the following transactions during 2012, its first year

Question

La Paz Company engaged in the following transactions during 2012, its first year in operation:(Assume all 1. Acquired $4,100 cash from issuing common stock 2. Borrowed $2,750 from a bank. 3. Earned $3,650 of revenues. 4. Incurred $2,510 in expenses 5. Paid dividends of $510. La Paz Company engaged in the following transactions during 2013: 1. Acquired an additional $1,050 cash from the issue of common stock 2. Repaid $1,685 of its debt to the bank. 3. Earned revenues, $5,050. 4. Incurred expenses of $2,97O 5. Paid dividends of $1,300 The net cash flow from financing activities on La Paz's 2013 statement of cash flows was O $1.050 intlow. $250 outflow. O $1.935 outflow O $1,935 infiow.

Explanation / Answer

C. $1,935 outflow

Cash outflow for financing activities = Cash inflow from issuing stock - Cash outflow for loan repayment - Cash outflow for dividends = $1,050 - $1,685 - $1,300 = $1,935

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