Below are the transactions for the louisville company: proceeds from issuance of bonds payable $635,000 payment to purchase equipment $275,000 payment of wages $115,000 payment of dividends $155,000 payment to pay off notes payable $195,000 based on these transactions, what is the net cash flow from financing activities?

Business · College · Tue Nov 03 2020

Answered on

Now, let's calculate the net cash flow from financing activities:

Proceeds from issuance of bonds payable = $635,000 (cash inflow)

Payment of dividends = -$155,000 (cash outflow)

Payment to pay off notes payable = -$195,000 (cash outflow)

Net cash flow from financing activities = Proceeds from issuance of bonds payable + Payment of dividends + Payment to pay off notes payable

Net cash flow from financing activities = $635,000 - $155,000 - $195,000

Net cash flow from financing activities = $285,000

Therefore, the net cash flow from financing activities for the Louisville Company is $285,000.

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