Lexington Company Engaged in the Following Transactions During Year 1

question 43

Multiple Choice

Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.) 1) Acquired $3,100 cash from issuing common stock.2) Borrowed $2,250 from a bank.3) Earned $3,150 of revenues.4) Incurred $2,410 in expenses.5) Paid dividends of $410.Lexington Company engaged in the following transactions during Year 2:1) Acquired an additional $550 cash from the issue of common stock.2) Repaid $1,335 of its debt to the bank.3) Earned revenues, $4,550.4) Incurred expenses of $2,770.5) Paid dividends of $700. What is the net cash flow from financing activities on Lexington's statement of cash flows for Year 2?

• A) $150 outflow
• B) $550 inflow
• C) $1,485 outflow
• D) $1,485 inflow
• E) $150 outflow.

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