[The Following Information Applies to the Questions Displayed Below

question 85

Multiple Choice

[The following information applies to the questions displayed below.]

Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions)

Acquired $6,000 cash from issuing common stock.
Borrowed $4,400 from a bank.
Earned $6,200 of revenues.
Incurred $4,800 in expenses.
Paid dividends of $800.

Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions)

Acquired an additional $1,000 cash from the issue of common stock.
Repaid $2,600 of its debt to the bank.
Earned revenues, $9,000.
Incurred expenses of $5,500.
Paid dividends of $1,280.

-What was the net cash flow from financing activities reported on Lexington's statement of cash flows for Year 2?

• A)$2,880 outflow
• B)$2,880 inflow
• C)$1,000 outflow
• D)$1,000 inflow

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