QS 12-16 (Algo) Computing cash flows from financing LO P3 Cash received from long-term notes payable Purchase of investments Cash dividends paid Interest paid $ 42,000 10,700 34,400 17,200 Compute cash flows from financing activities using the above company information. Note: Amounts to be deducted should be indicated by a minus sign. Financing Activities

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Operating Cash Flows

A cash flow statement (CFS) helps the company to know the amount of cash at its disposal, the activities that lead to earning cash, and the activities which require cash expenditure for a particular period. The statement represents the liquidity of the company.