Question

The accountant for Foster Institute, Inc., determined the cash flow for several transactions to be as follows: Payment to pay off notes payable $ 195,000 Proceeds from issuance of bonds payable $ 635,000 Payment to purchase equipment $ 275,000 Payment of wages $ 115,000 Payment of dividends $ 155,000 ​ On the basis of the above transactions alone, determine the net cash flow from financing activities.

Answer 1

Answer:

$285,000

Explanation:

Data provided in the question;

Payment to pay off notes payable = $195,000

Proceeds from issuance of bonds payable = $635,000

Payment to purchase equipment = $275,000

Payment of wages $115,000

Payment of dividends $155,000

Now,

The payment of wages and the payments made to purchase equipment are not included in the financing activities

Therefore,

The financing activities for the Foster Institute, Inc.

                  Particulars                                                           Amount

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       Proceeds from issuance of bonds payable              $635,000

Less:

       Payment to pay off notes payable                            $195,000

       Payment of dividends                                                $155,000

==============================================================

Net cash flow from financing activities                             $285,000

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