Question

Detail explanation please.

Using the following information, compute Net Cash Flow from Financing Activities. Note that some of the numbers in this problem are the same as those in the previous problem. Some, however, are different. You must answer this problem separately.

  Balance Sheets for the Years Ending Dec. 31, 2011 and 2012       2011 2012Cash             300            400Accounts receivable         1,000        1,400Inventories         3,200        3,000 Current assets         4,500        4,800Net fixed assets         3,800        4,300Total assets         8,300        9,100     Notes payable             400            300Accounts payable             700            500Accruals               50              80Current portion of long-term debt               70              80 Current liabilities         1,220            960Long-term debt         4,300        4,900Common stock ($.20 par)         1,200        1,300Additional paid-in capital             680            740Retained earnings             900        1,200 Total liabilities and equity         8,300        9,100

Net income (as reported on the 2012 Income statement) = 411

Depreciation (as reported on the 2012 Income statement) = 225

Net Cash Flow from Financing Activities = __________

Answer 1

cash flow from Financing Activities = - decrease of Notes Payable + Issue of Long term debt + Issue of common stock + Increase in additional paid in capital - Dividends Paid

cash flow from Financing Activities = - 100 + (4900+80 -4300 - 70) + 100 + 60 - (Net Income - Addition to retained earnings)

cash flow from Financing Activities = - 100 + 610 + 100 + 60 - (411 - (1200-900))

cash flow from Financing Activities = - 100 + 610 + 100 + 60 - 111

cash flow from Financing Activities = $559