What Is the Financing Cash Flow, Given the Following Information

question 27

Multiple Choice

What is the financing cash flow, given the following information?
$\begin{array}{lrr} \text { Net income} &\$550\\ \text {Depreciation } &\$60\\ \text { Issuance of new stock} &\$25\\ \text { Repayment of long-term debt } &\$30\\ \text {Sale of old equipment } &\$45\\ \text { Purchase of new equipment} &\$65\\ \text { Dividend payments} &\$70\\ \text { Interest payments} &\$100\\\end{array}$

• A)-$180
• B)-$150
• C)-$110
• D)(?)$75
• E)(?)$10

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Definitions:

Proportionately Adjusted Income Statement

An income statement in which each line item is adjusted in proportion to a certain factor or criteria to reflect a more comparable basis.

Cost of Sales

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and manufacturing overhead.

Contractual Agreement

A legally binding agreement between two or more parties, outlining their responsibilities and obligations.

Equity Method

An accounting technique used to record investments in associated companies, where the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's net profit or loss.