Packard Company engaged in the following transactions during Year 1, its first y

Question

Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.) 1) Acquired $950 cash from the issue of common stock. 2) Borrowed $420 from a bank. 3) Earned $650 of revenues cash. 4) Paid expenses of $250. 5) Paid a $50 dividend. During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.) 1) Issued an additional $325 of common stock. 2) Repaid $220 of its debt to the bank. 3) Earned revenues of $750 cash. 4) Incurred expenses of $360. 5) Paid dividends of $100

Explanation / Answer

Answer is : $5 inflow

Cash flows from financing activities Proceeds from issue of shares $   325 Repayment of borrowings $ (220) Dividend paid $ (100) Net cash provided by financing activities $ 5

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