Question

How much were net financing cash flows during 2026 if net income was $11,200? 2025 2026 2025 2026 Cash $12,000 $12,600 Accounts payable $2,200 $4,100 Accounts receivable $4,800 $7,100 Utilities payable $800 $950 Inventory $5,500 $7,800 Salaries payable $2,000 $1,800 Prepaid rent $800 $200 Notes payable $14,000 $11,000 Equipment $18,000 $18,000 Interest payable $600 $850 Accum. depreciation ($4,000) ($5,200) Common stock $25,000 $25,000 Land $22,000 $20,500 Retained earnings $14,500 $17,300 $59,100 $61,000 $59,100 $61,000 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a ($3,000) b ($8,400) с ($11,400) d ($5,400)

Answer 1

Given Information

Net Income during 2026 = $11,200

Net cash outflow from financing activities

Cash outflow on repayment of notes payable[14000-11000]	($3,000)
Dividend paid *	($8,400)
Cash outflow	($11,400)

Answer is option c ($11,400)

*Dividend paid = Net Income – Increase in Retained earnings

=11200 – (17300 – 14500)

= 11200 – 2800

= 8400

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