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Vision Company purchased treasury stock with a cost of $16,000 during 2016. During the year, the company paid dividends of $20,000 and issued bonds payable for proceeds of $860,000.
Required:
a. Cash flows from financing activities for 2016 total _____________.

Respuesta :

Answer: $ 824,000

Explanation:

Cash flow statement of Vision Company for the year 2016

Cash inflow

Bonds payable                              $860000

Cash out flow

(-)Changes in working capital

Increase in stock                               $16000

(-)Cash for financing

Dividends paid                                  $20000

Total cash flow from

financing activities                            $824,000            

Cash flow statement shows the difference between the inflow and outflow of the financing activities.