Use the Indirect Method of Preparing a Statement of Cash

question 35

Short Answer

Use the indirect method of preparing a statement of cash flows to answer the question.
Ending balances for Sunday Hut are listed below:
Net income for this year was $97,000 and dividends of $24,000 were declared and paid this year.
What was the net cash inflow from financing activities?

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Definitions:

Share Issuance Costs

Expenses associated with the issuance of new shares, such as underwriting, legal, and registration fees.

Financial Statements

Formal records of financial activities and position of a business, person, or other entity, presenting the financial results over a specific period.

Forfeited Shares

Shares that are surrendered or taken back by a company from an investor because of the non-fulfillment of purchase conditions or agreements.

Reissue

The process of issuing again, such as reissuing shares or securities that have been bought back or cancelled.