Packard Company Engaged in the Following Transactions During Year 1

question 100

Multiple Choice

Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)
1) Acquired $1,850 cash from the issue of common stock.2) Borrowed $1,320 from a bank.3) Earned $1,500 of revenues cash.4) Paid expenses of $430.5) Paid a $230 dividend.During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.) 1) Issued an additional $1,225 of common stock.2) Repaid $850 of its debt to the bank.3) Earned revenues of $1,650 cash.4) Incurred expenses of $720.5) Paid dividends of $280.What is the amount of Packard Company's net cash flow from financing activities for Year 2?

• A) Net inflow of $945.
• B) Net outflow of $1,130.
• C) Net outflow of $850.
• D) Net inflow of $95.

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Definitions:

Opportunity Costs

The value of the next best alternative that is foregone when a particular decision is made.

Opportunity Cost

The bypass of potential advantages from different routes when a specific option is taken.

Agricultural Production

The process and methods used in the cultivation of plants and raising of animals for food, fiber, biofuel, medicinal plants, and other products used to sustain and enhance human life.

Labor Force

The total number of people employed and unemployed, seeking employment in an economy.