Question

The following selected account balances were taken from ABC Company's general ledgers for 2019: Inventory Accounts payable Salaries payable Investments Accounts receivable Land Notes payable Unearned revenue Common stock Retained earnings January 1, 2019 74,000 50,000 9,000 68,000 69,000 58,000 195,000 17,000 100,000 23,000 December 31, 2019 56,000 28,000 4,000 75,000 35,000 88,000 120,000 25,000 190,000 63,000 The following information was taken from ABC Company's 2019 income statement: Sales revenue Cost of goods sold Salaries expense Net income $420,000 300,000 68,000 $ 52,000 Calculate ABC Company's net cash flow from financing activities for 2019. If your answer is negative, place a minus sign in front of your answer with no spaces in between (e.g., -1234).

Answer 1

Answer---------Cash from financing activities = $3,000

Working

Cash flows from financing activities:
Cash paid for redemption of notes payable	-$ 75,000
Issue of common stock	$ 90,000
Dividends paid	-$ 12,000
Net cash from Financing Activities		$ 3,000

..

Calculation of dividend paid
Beginning balance of retained earnings	$       23,000.00
Add: Net income	$       52,000.00
	$       75,000.00
Less: Ending balance of Retained earnings	$       63,000.00
Dividends paid in cash	$       12,000.00