contestada

Miller Company purchased treasury stock with a cost of $15,000 during the current year.
During the year, the company paid dividends of $20,000 and issued bonds payable for proceeds of $816,000.

Cash flows from financing activities for the the year total:

a. $811,000 net cash inflow.

b.$5,000 net cash outflow.

c.$781,000 net cash inflow.

d.$796,000 net cash inflow.

Respuesta :

pedrocarratore

Answer:

c.$781,000 net cash inflow.

Explanation:

Cash flow in this situation is given by:

Cash flow = issued bonds payable - treasury stock purchases - paid dividends

Cash flow = $816,000 - $15,000 - $20,000

Cash flow = $781,000

Since the cash flow value is positive, this is a net cash inflow

Therefore, the answer is c.$781,000 net cash inflow.

The cash flows from financing activities for the year after making the necessary adjustments is $781,000. Thus, Option C. is the correct choice.

What do you mean by Cash flow from financing activity?

Cash flow from financing activities (CFF) is part of the company's cash flow statement, which shows the total cash flow used to finance the company. Financial transactions include transactions involving debt, equity, and dividends.

Calculation of Cash flow from Financing activities:

[tex]\rm\,Cash \,Flow\, From \,Financing \,Activity= Issue \,of \,Bonds \,Payable -\, Dividend \,Paid - \,Purchase \,of \,Treasury \,Stock\\\\\rm\,Cash \,Flow\, From \,Financing \,Activity= \$816,000 - \$20,000 - \$15,000\\\\\rm\,Cash \,Flow\, From \,Financing \,Activity= \$781,000[/tex]

Hence, Option C. is the correct choice.

Refer to the link to learn more about Cash flow from financing activity:

https://brainly.com/question/25645312

Otras preguntas