Use the Following Information to Answer Questions

question 36

Multiple Choice

Use the following information to answer questions
Packard Company engaged in the following transactions during 2015,its first year in operations: (Assume all transactions are cash transactions. )
1) Acquired $950 cash from the issue of common stock.
2) Borrowed $420 from a bank.
3) Earned $650 of revenues.
4) Paid expenses of $250.
5) Paid a $50 dividend.
During 2016,Packard engaged in the following transactions: (Assume all transactions are cash transactions. )
1) Issued an additional $325 of common stock.
2) Repaid $220 of its debt to the bank.
3) Earned revenues of $750.
4) Incurred expenses of $360.
5) Paid dividends of $100.
-The net cash inflow from operating activities on Packard's 2015 statement of cash flows is

• A)$400.
• B)$650.
• C)$350.
• D)$820.

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Definitions:

Compounded Quarterly

The process whereby interest is calculated and added to the principal sum every quarter, leading to compound growth.

Personal Savings

The portion of an individual's income that is not spent on consumption and is set aside for future use.

Credit Union

A financial institution that is owned and operated by its members, focusing on providing credit at competitive rates as well as other financial services.

Maturity Value

For an interest-bearing note, it is the sum of the face value (principal) and the interest dollars: MV = P + I.