McLaughlin Company Issued Common Stock for Proceeds of $372,000 During

question 234

Multiple Choice

McLaughlin Company issued common stock for proceeds of $372,000 during 2014. The company paid dividends of $66,000 and issued a long-term note payable for $250,000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $54,000. The financing section of the statement of cash flows will report net cash inflows of

• A) $252,000.
• B) $556,000.
• C) $306,000.
• D) $502,000.

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Definitions:

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.

Competitive Market

A market structure characterized by many buyers and sellers, where no single entity has the power to influence market prices.

Profit

Profit is the financial benefit realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in maintaining the activity.

Short-Run Equilibrium

A situation in a market where demand equals supply, resulting in a stable price level, but which may not reflect long-term market dynamics.