Simple Statement of Cash Flows from Financing Activities Gumoo, Inc., is a seafo

Question

Simple Statement of Cash Flows from Financing Activities Gumoo, Inc., is a seafood restaurant in New Orleans. Gumbo began business in January 20X1 when investors bought common stock for $100,000 cash. Gumbo also borrowed $55,000 from Stateside Bank on January 15, on which it paid interest of $3,000 on July 15. In January the company invested $80,000 in machinery and equipment and signed a monthly rental agreement on a building with rental payments of $4,000 a month. During 20X1 Gumbo had net income of $ 14,000 on sales of $249,000. On December 15 the company declared and paid cash dividends of $2,000 to its common stockholders. On December 31 the company paid $10,000 to buy common shares back from the stockholders. Prepare a statement of cash flows from financing activities for the year 20X1.

Explanation / Answer

Statement of cash flows from financing activities

Issue of common stock $100000 Borrowings from stateside bank $55000 Payment of interest ($3000) Cash inflows from financing actities 152000

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