Mosquito Music reported the following transactions for the year: a. A cash divid

Question

Mosquito Music reported the following transactions for the year:

a.    A cash dividend of $300,000 was paid.

b.    A 60-day note payable was issued for $15,000 cash.

c.    Mosquito purchased back $55,000 of its own common stock.

d.    Bonds with a face value of $43,000 were issued at par.

Use this information to compute cash flows from financing activities for Mosquito Music. Enter your answers in the shaded boxes below. A couple of boxes have been completed for you.

Cash flows from financing activities

Cash flows from financing activities

Explanation / Answer

outflow = 300,000

note = 15000

purchased = 55,000

inflow = 43000

net cash outflow - inflow = 300000+55000-43000 = $312000

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