During the current year, Jamison Manufacturing had net income of $15,000 and paid dividends of $8,000.Jamison also borrowed $50,000 on January 1 and repaid $5,000 of the note during the year.Jamison's net cash flows provided by financing activities is
A)$37,000
B)$42,000
C)$50,000
D)$65,000

Question

Quizplus · Accepted Answer

Net cash flows from financing activities include cash inflows from borrowing ($50,000) and cash outflows from repaying debt ($5,000) and paying dividends ($8,000). Thus, $50,000 - $5,000 - $8,000 = $37,000.

During the Current Year, Jamison Manufacturing Had Net Income of $15,000