Flow Company Has Provided the Following Information for the Year

question 65

Multiple Choice

Flow Company has provided the following information for the year ended December 31, 2014: • Cash paid for interest, $20,000
• Cash paid for dividends, $6,000
• Cash dividends received, $4,000
• Cash proceeds from bank loan, $29,000
• Cash purchase of treasury stock, $11,000
• Cash paid for equipment purchase, $27,000
• Cash received from issuance of common stock, $37,000
• Cash received from sale of land with a $32,000 book value, $25,000
• Acquisition of land costing $51,000 in exchange for preferred stock issuance
• Payment of a $100,000 note payable by exchanging used machinery with a $77,000 book value and $100,000 fair value
How much was Flow's net cash flow from financing activities?

• A) A net outflow of $51,000.
• B) A net inflow of $29,000.
• C)A net outflow of $53,000.
• D)A net inflow of $49,000.

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Definitions:

Cash Receipts Journal

A specialized accounting journal used to keep track of all cash inflows or receipts of a business.

General Journal

A comprehensive accounting ledger that records all types of financial transactions, before posting to specific accounts in the general ledger.

Expanded Purchases Journal

A detailed record used in accounting to track all purchase transactions, including more comprehensive data than a standard journal.

Accounts Payable

A liability to a creditor, usually for purchases of goods and services.