Cline Company Issued Ordinary Shares for Proceeds of $392,000 During

question 167

Multiple Choice

Cline Company issued ordinary shares for proceeds of $392,000 during 2014. The company paid dividends of $66,000 and issued a non-current note payable for $90,000 in exchange for equipment during the year. The company also purchased treasury shares that had a cost of $14,000. The financing section of the statement of cash flows will report net cash inflows of

• A) $312,000.
• B) $424,000.
• C) $326,000.
• D) $378,000.

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Definitions:

Benefits

Advantages or positive outcomes derived from a particular action or policy.

Free Good

A good that is available without any cost, typically because it is abundant or not owned by any one entity.

Economizing Behavior

The practice of minimizing costs or expenditures while achieving desired outcomes.

Opportunity Cost

The penalty of overlooking the closest preferable alternative in the course of decision-taking.