The following transactions were made by Ruby Inc.last year:
Based solely on the above information, net cash flow from financing activities for the year on the statement of cash flows would be:

A) $58,000.
B) ($150,000).
C) ($67,000).
D) $29,000.

Question

The following transactions were made by Ruby Inc.last year:
 Based solely on the above information, net cash flow from financing activities for the year on the statement of cash flows would be:

A) $58,000. 
B) ($150,000). 
C) ($67,000). 
D) $29,000.

Quizplus · Accepted Answer

Net cash flow from financing activities = Issuance of common stock - Dividends paid to the company's stockholders - Repayment of principal on bonds
= $100,000 - $2,000 - $40,000
= $58,000

The Following Transactions Were Made by Ruby Inc