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During the year Company A had the transactions listed below. What amount would t

ID: 2602830 • Letter: D

Question

During the year Company A had the transactions listed below. What amount would the company include in the financing section of the statement of cash flow?

Cash to retire bonds

$4,200

Proceeds from bond issuance

8,040

Proceeds from sale of common stock

6,240

Cash to purchase common stock of Company A

2,400

Cash to purchase common stock of Company B

1,080

Cash to retire bonds

$4,200

Proceeds from bond issuance

8,040

Proceeds from sale of common stock

6,240

Cash to purchase common stock of Company A

2,400

Cash to purchase common stock of Company B

1,080

Explanation / Answer

Cash flow frpm financing activities

Cash to retire bonds (4,200)

Proceeds from bond issuance 8,040

Proceeds from sale of common stock of company X 6,240

Cash to purchase common stock of company X (2,400)

Cash flow from financing activities is 7,680 positive