XYZ Company reported the following cash flows for the most recent year: Cash rec

Question

 XYZ Company reported the following cash flows for the most recent year:  Cash received from:   Customers                     $3,000   Sale of common stock             600   Interest on bank accounts        200   Bank loans                     2,500  Cash paid for:   Purchase of equipment         $4,000   Operating expenses               900   Dividends                        700   Interest on bank loans           300   Purchase of inventory            800   Principle on notes payable     1,000  Assume XYZ Company prepares its financial statements according to international financial reporting standards (IFRS). Also, assume that wherever possible XYZ Company classifies cash flows differently than would be required under GAAP.  Calculate XYZ Company's net cash flow from financing activities for the most current year. If your answer is negative, place a minus sign in front of your answer with no spaces in between (e.g., -1234). Do not use decimals in your answer. 

Explanation / Answer

Solution.

Calculation of financing activity.

Particulars Amount Amount Sale of common stock            600 Bank loans         2,500 cash in-flow from financing activities                       3,100 Dividends            700 Interest on bank loans            300 cash out-flow from financing activities                    (1,000) Net cash flow from financing activities                       2,100

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