Question

12.1 CengageNOWV2 Online teaching and learning resource from Cangage.. Book + Calculator Brief Exercise 11-31 (Algorithmic) Determining Net Cash Flow from Financing Activities Madison Company reported the following information: Notes payable Common stock Retained earnings 12/31/2019 $95,000 120,000 20,000 12/31/2018 $75,000 80,000 36,000 Madison reported net income of $35,000 for the year ended December 31, 2019. In addition, Madison repaid $64,000 of the notes payable during 2019. Required: Compute net cash flow from financing activities. Use a minus sign to indicate negative cash flows outflows). Check My Work 5 more Check My Work uses remaining Previous Next > All work saved Email Instructor Save and Exit Submit Assignment for Grading delete y lue " }

Answer 1

Solution:

We consider notes payble, payment made for motes payable and common stock into cosideration while calculating net cash flow from financing activities.

Net Cash flow from financing activities: 95000-75000 - 64000 +120000-80000 = -$4000

so there is negative cash flow of $4000