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Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions)
Acquired $6,000 cash from issuing common stock.
Borrowed $4,400 from a bank.
Earned $6,200 of revenues.
Incurred $4,800 in expenses.
Paid dividends of $800.
Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions)
Acquired an additional $1,000 cash from the issue of common stock.
Repaid $2,600 of its debt to the bank.
Earned revenues, $9,000.
Incurred expenses of $5,500.
Paid dividends of $1,280.
-What was the net cash flow from financing activities reported on Lexington's statement of cash flows for Year 2?
A) $2,880 outflow
B) $2,880 inflow
C) $1,000 outflow
D) $1,000 inflow
Correct Answer:
Verified
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