Question: A firm paid dividends of $10,000, paid interest of $20,000, reduced debt principal outstanding (paid off debt) in the amount of $100,000, and sold new stock for $150,000. What was the firm's cash flow from financing activities? A) +$20,000 ($20,000 flowed into the firm)- B) +$280,000 ($280,000 flowed into the firm) C) -$280,000 ($280,000 flowed out of the firm) D) -$20,000 ($20,000 flowed out of the firm)
Question: A firm paid dividends of $10,000, paid interest of $20,000, reduced debt principal outstanding (paid off debt) in the amount of $100,000, and sold new stock for $150,000. What was the firm's cash flow from financing activities? A) +$20,000 ($20,000 flowed into the firm)- B) +$280,000 ($280,000 flowed into the firm) C) -$280,000 ($280,000 flowed out of the firm) D) -$20,000 ($20,000 flowed out of the firm)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question:
A firm paid dividends of $10,000, paid interest of $20,000, reduced debt principal outstanding (paid
off debt) in the amount of $100,000, and sold new stock for $150,000. What was the firm's cash
flow from financing activities?
A) +$20,000 ($20,000 flowed into the firm)-
B) +$280,000 ($280,000 flowed into the firm)
C) -$280,000 ($280,000 flowed out of the firm)
D) -$20,000 ($20,000 flowed out of the firm)
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