During Year 5, Stout Inc. made a cash payment of $186,000 on dividends declared in Year 4 and paid $2,650,000 to retire $2,620,000 of long-term bonds payable early. The company also sold treasury stock purchased for $258,000 for $300,000 and had $360,000 of preferred stock converted into shares of common stock. Based on this information, what was Stout's net cash flows from financing activities for Year 5? a. $2,548,0 b. $2,536,0 c. $1,990,0 d. $2,176,0

Respuesta :

Answer:

b. $2,536,000

Explanation:

The computation of the net cash flows from financing activities is presented below:

Cash flows from financing activities

Cash payment on dividend declared -$186,000

Sale value of treasury stock $300,000

Cash paid to retire of long term bond -$2,650,000

Net cash flows used by financing activities -$2,536,000

The cash outflow is in negative sign whereas the cash inflow is in positive sign