Question

24. Bramble Corp. issued common stock for proceeds of $547000 during 2017. The company paid dividends of $97000 and issued a long-term note payable for $368000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $79000. The financing section of the statement of cash flows will report net cash inflows of

$450000.

$818000.

$371000.

$739000.

Answer 1

Answer:

The financing section of the statement of cash flows will report net cash inflows:

Particulars	Amount
Cash flow from financing activities:
Issuance of common stock	$547,000
Dividend paid	($97,000)
Purchase of treasury stock	($79,000)
Net cash flow from financing activities	$371,000

Note: The issuance of long-term note payable for $368000 in exchange for equipment does not result in inflow or outflow of cash & cash equivalents.

Accordingly, Option (c) i.e. $371,000 is the correct answer.