Question

Fact Pattern: Selected financial information for Kristina Company for the year just ended is shown below....

Fact Pattern:

Selected financial information for Kristina Company for the year just ended is shown below.

Net income

$2,000,000

Increase in net accounts receivable

300,000

Decrease in inventory

100,000

Increase in accounts payable

200,000

Depreciation expense

400,000

Gain on the sale of available-for-sale securities

700,000

Cash receivable from the issue of common stock

800,000

Cash paid for dividends

80,000

Cash paid for the acquisition of land

1,500,000

Cash received from the sale of available-for-sale securities

2,800,000

Question

Kristina’s cash flow from financing activities for the year is

  • A.$720,000

  • B.$3,520,000

  • C.$(80,000)

  • D.$800,000

Homework Answers

Answer #1
Solution:
Statement of Cash Flows (Partial)
Amount in $ Amount in $
Cash flows from Financing activities
Cash Received from the issue of common Stock $           8,00,000
Cash paid for Dividends $             -80,000
Net cash used in financing activities $       7,20,000
Answer = Option A = $ 720,000
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