The Following Transactions Occurred Last Year at Dempsey Inc

question 150

Multiple Choice

The following transactions occurred last year at Dempsey Inc.
Based solely on the above information, the net cash flows from financing activities for the year on the statement of cash flows would be

• A) $249,000.
• B) $7,000.
• C) $(103,000).
• D) $(6,000).

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Definitions:

ESOs

Employee Stock Options are options granted to employees as part of their compensation package, allowing them to purchase company stock at a set price.

Vesting Period

The period of time before employees earn non-forfeitable rights over employer contributions made to the employee's pension plan or stock option plan.

Up To Three Years

A phrase indicating a time frame or duration that does not exceed three years.

American Call Option

A type of options contract that gives the holder the right, but not the obligation, to buy a specified quantity of a security at a specified price within a certain time period.