Walker Corp. conducted the following activities during 2001: (1) they sold 10,00
ID: 2642570 • Letter: W
Question
Walker Corp. conducted the following activities during 2001: (1) they sold 10,000 shares of their own stock for $17.00 per share; (2) they issued bonds for which they received $498,000; (3) they paid dividends to their stockholders totaling $82,000; (4) they sold a piece of equipment for $50,000 that they were carrying on their books for $20,000; (5) they earned net income of $140,000. What would be shown on the Statement of Cash Flows for "CASH FROM FINANCING ACTIVITIES" based on the information above?
Explanation / Answer
Hi,
Please find the answer as follows:
Cash from financing activities = 10000*17 (Sale of Common Stock) + 494000 (Issue of Bonds) - 82000 (Payment of Dividends) = 582000
Answer is 582000.
Notes:
1) Net Income will be used in calculating of cash flow from operating activities.
2) Sale of Equipment will be reported under investing activit
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