Use the information given below to answer the following questions:
During the year, Penso Ltd received $50 000 from its customers, $5000 for the sale of a motor vehicle and $20,000 for the issue of shares. It paid $27,000 to suppliers and employees, $3000 for income tax and $50,000 for new machinery. In addition, it paid out $12 000 to redeem bonds. Its cash balance at the commencement of the year was $22,000.
-What were the cash flows from financing activities?
A) $20 000
B) $8000
C) ($12 000)
D) ($28,000).

Question

Quizplus · Accepted Answer

Cash flows from financing activities include cash received from issuing shares ($20,000) and cash paid to redeem bonds ($12,000), resulting in a net cash flow of $8,000.

Use the Information Given Below to Answer the Following Questions