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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)

FINANCIAL ACCOUNTING
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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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)
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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