During 2012, Smithson Corp. had the following cash flows: receipt from customers

Question

During 2012, Smithson Corp. had the following cash flows: receipt from customers, $16,000; receipt from the bank for long-term borrowing, $7,400; payment to suppliers, $5,900; payment of dividends, $1,400, payment to workers, $2,100; and payment for machinery, $11,500. What amount would be reported for financing cash flows on the Statement of Cash Flows?

$7,400

$6,000

($11,500)

$5,500

During 2012, Smithson Corp. had the following cash flows: receipt from customers, $16,000; receipt from the bank for long-term borrowing, $7,400; payment to suppliers, $5,900; payment of dividends, $1,400, payment to workers, $2,100; and payment for machinery, $11,500. What amount would be reported for financing cash flows on the Statement of Cash Flows?

$7,400

$6,000

($11,500)

$5,500

Explanation / Answer

Cash flow from finanacing activities = Cash receipt from bank loan - payment of dividends = $7400 - $1400 = $6000

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.