Question

The following selected account balances were taken from ABC Company's general
ledgers for 2019:

                      January 1, 2019       December 31, 2019
  Inventory                  74,000                56,000
  Accounts payable           50,000                28,000
  Salaries payable            9,000                 4,000
  Investments                68,000                75,000
  Accounts receivable        69,000                35,000
  Land                       58,000                88,000
  Notes payable             195,000               120,000
  Unearned revenue           17,000                25,000
  Common stock              100,000               190,000
  Retained earnings          23,000                63,000

The following information was taken from ABC Company's 2019 income statement:

  Sales revenue                   $420,000
  Cost of goods sold               300,000
  Salaries expense                  68,000
  Net income                      $ 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

Net cash flow from financing activities = $ 15,000

Calculations:

Cash Flow from Financing Activities
Notes repaid	$(75,000)
Stock issued	$ 90,000
		$ 15,000

In case of any doubt, please comment.