Question

Check my work Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows: Ending Balance Cash 77,400 Accounts receivable 63,400 Inventory 85,100 Total current assets 225,900 Property, plant, and equipment 228, eee Less accumulated depreciation 76,eee Net property, plant, and equipment_ 152,000 Total assets $ 377,900 Beginning Balance 92,550 68,200 77,50e 238, 250 217, eee 54, 25e 162,750 401,000 ped $ ook mint $ rences Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity 49,600 38,6ee 93, eee 108,500 88, 200 377,900 88, 200 48,3ee 77,5ee 93,000 94, eee 401, eee $ $ During the year, Ravenna paid a $9,300 cash dividend and it sold a piece of equipment for $4,650 that had originally cost $10,200 and had accumulated depreciation of $6,800. The company did not retire any bonds or repurchase any of its own common stock during the year

Answer 1

Answer

Net Cash

provided by

financing activities

$21,700

Calculated as

Inflow from issue of Bonds = $93000-$77500 = $15500

Inflow from issue of common stock = $108500-93000 = $15500

Used in payment of Dividend = $9300

So net inflow from financing activities = $15500+$15500-$9300 =$21700

Hit Thumbs up if satisfied

Have any query mention in comment section please

Thank you