During 2019,Tommy's Toys reported the following: long-term debt repayments,$503 million;interest paid,$143 million;proceeds from exercise of stock options,$27 million,and issue of common stock in exchange for land costing $10 million.What is the 2019 net cash flow from financing activities?
A)$476 million net cash outflow.
B)$530 million net cash outflow.
C)$673 million net cash outflow.
D)$76 million net cash outflow.

Question

Quizplus · Accepted Answer

Net cash flow from financing activities is calculated as long-term debt repayments ($503 million) plus interest paid ($143 million) minus proceeds from exercise of stock options ($27 million), resulting in a net cash outflow of $619 million. However, the issue of common stock in exchange for land is a non-cash transaction and does not affect cash flow. Therefore, the net cash outflow is $476 million.

During 2019,Tommy's Toys Reported the Following: Long-Term Debt Repayments,$503 Million;interest