Required information Financing Cash Flows Inflows Outflows 1. Owners when shares

Question

Required information Financing Cash Flows Inflows Outflows 1. Owners when shares are sold to them 1. Owners in the form of dividends or other distributions 2. Creditors when cash is borrowed through notes, loans, mortgages, a bonds Owners for the reacquisition of shares reviously sold . Creditors as repayment of the principal amounts of debt (other than trade payablc) Net Cash Flows from Financing Activities Knowledge Check 01 Fortuna Company is preparing its statement of cash flows. Cash disbursements during the year included Payment for a new stamping machine Payment of dividends to stockholders Payment to acquire 100 shares of Lola Corp $200,000 100,000 40,000 What are Fortuna's total cash outflows for financing activities? ash outflows for financing activities

Explanation / Answer

Calculation of cash outflow for financing activities:

Payment of dividend to stockholders= 100000

Add: Payment to acquire 100 shares= 40000

Cash outfloes for financing activities= $140000

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