Consider the following events:• 25,000 shares of preferred stock, cumulative, 5%, $40 par was issued for $60/share.• The annual cash dividend was declared and paid to the above preferred stock.• The company purchased 12,000 shares of common stock at $68 per share to be held as Treasury stock.• Interest of $32,000 was paid to bondholders.• Bonds Payable with a par value of $400,000 were retired at $432,000.Compute the net cash flow from financing activities (parentheses indicate an outflow).

Introduction: Statement of cash flows: All cash and in out transactions are recorded in statement of…

Answered: Consider the following events: •…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Consider the following events:

•	25,000 shares of preferred stock, cumulative, 5%, $40 par was issued for $60/share.
•	The annual cash dividend was declared and paid to the above preferred stock.
•	The company purchased 12,000 shares of common stock at $68 per share to be held as Treasury stock.
•	Interest of $32,000 was paid to bondholders.
•	Bonds Payable with a par value of $400,000 were retired at $432,000.

Compute the net cash flow from financing activities (parentheses indicate an outflow).

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