5-33 Simple Statement of Cash Flows from Financing Activities Gumbo, Inc., is a

Question

5-33 Simple Statement of Cash Flows from Financing Activities Gumbo, Inc., is a seafood restaurant in New Orleans. Gumbo began business in January 20X1 when investors bought common stock for $100,000 cash. Gumbo also borrowed $55,000 from Stateside Bank on January 15, on which it paid interest of $3,000 on July 15. In January the company invested $80,000 in machinery and equipment and signed a monthly rental agreement on a building with rental payments of $4,000 a month. During 20XI Gumbo had net income of $14,000 on sales of $249,000. On December 15 the company declared and paid cash dividends of $2,000 to its common stockholders. On December 31 the company paid $10,000 to buy common shares back from the stockholders. Prepare a statement of cash flows from financing activities for the year 20X1

Explanation / Answer

Statement of cash flows from financing activities Issue of common stock $         100,000 Borrowings from stateside bank $           55,000 payment of interest $           (3,000) payment of dividend $           (2,000) buyback of common stock $         (10,000) Cash flows from financing activities $         140,000

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.