During Year 1, El Paso Company had the following changes in account balances: • The Accumulated Depreciation account had a beginning balance of $77,500 and an ending balance of $108,500. The increase was due to depreciation expense. • The Long-Term Notes Payable account had a beginning balance of $124,000 and an ending balance of $63,000. The decrease was due to repayment of debt. • The Equipment Account had a beginning balance of $105,000 and an ending balance of $289,500. The increase was due to the purchase of other operational assets. • The Long-Term Investments Account (Marketable Securities) had a beginning balance of $75,600 and an ending balance of $52,500. The decrease was due to the sale of investments at cost. • The Dividends Payable account had a beginning balance of $50,400 and an ending balance of $42,000. There were $84,000 of dividends declared during the period. • The Interest Payable account had a beginning balance of $9,450 and an ending balance of $5,250. The difference was due to the payment of interest. What is the net cash flow from financing activities? $153,400 outflow $92,400 inflow $61,000 inflow $61,000 outflow None of the above.

During Year 1, El Paso Company had the following changes in account balances: • The Accumulated Depreciation account had a beginning balance of $77,500 and an ending balance of $108,500. The increase was due to depreciation expense. • The Long-Term Notes Payable account had a beginning balance of $124,000 and an ending balance of $63,000. The decrease was due to repayment of debt. • The Equipment Account had a beginning balance of $105,000 and an ending balance of $289,500. The increase was due to the purchase of other operational assets. • The Long-Term Investments Account (Marketable Securities) had a beginning balance of $75,600 and an ending balance of $52,500. The decrease was due to the sale of investments at cost. • The Dividends Payable account had a beginning balance of $50,400 and an ending balance of $42,000. There were $84,000 of dividends declared during the period. • The Interest Payable account had a beginning balance of $9,450 and an ending balance of $5,250. The difference was due to the payment of interest. What is the net cash flow from financing activities? $153,400 outflow $92,400 inflow $61,000 inflow $61,000 outflow None of the above.

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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