Yi Company began operations on January 1, 2013. During 2013, the company engaged

Question

Yi Company began operations on January 1, 2013. During 2013, the company engaged in the following cash transactions:

1) issued stock for $50,000
2) borrowed $30,000 from its bank
3) provided consulting services for $48,000
4) paid back $20,000 of the bank loan
5) paid rent expense for $11,500
6) purchased equipment costing $17,000
7) paid $3,500 dividends to stockholders
8) paid employees' salaries, $26,000

What is Yi's cash flow from financing activities?

a)outflow 3500

b)inflow 56500

c)inflow 46500

d)outflow 20000

Explanation / Answer

Option B is the answer

Cash flow from Financing Activities :-

= issued stock (50,000)+borrowed from Bank (30,000)-bank loan paid (20,000)-dividends paid(3500)

=56,500(inflow)

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