Yi Company Began Operations on January 1, 2013

question 149

Multiple Choice

Yi Company began operations on January 1, 2013. During 2013, the company engaged in the following cash transactions:
1) issued stock for $40,000
2) borrowed $25,000 from its bank
3) provided consulting services for $38,000
4) paid back $15,000 of the bank loan
5) paid rent expense for $9,000
6) purchased equipment costing $12,000
7) paid $3,000 dividends to stockholders
8) paid employees' salaries, $21,000
What is Yi's cash flow from financing activities?

• A) Inflow of $37,000
• B) Outflow of $15,000
• C) Inflow of $47,000
• D) Outflow of $3,000

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Definitions:

Macro Concept

A broad idea or principle that applies to large-scale phenomena or systems.

Procompetitive Legislation

Laws designed to promote competition among businesses and prevent monopolistic practices.

Establish Monopolies

The process or outcome of a single company gaining exclusive control over a commodity or service, often viewed negatively due to the potential for abuse of power.

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Workplaces, often in the manufacturing sector, that have poor working conditions, unfair wages, unreasonable hours, and may involve child labor.