Warner Limited Had the Following Cash Flows During a Reporting $\blacktriangleright$

question 20

Multiple Choice

Warner Limited had the following cash flows during a reporting period:
$\blacktriangleright$ Acquisition of subsidiary, net of cash flows $250 000
$\blacktriangleright$ Dividends paid $65 000
$\blacktriangleright$ Repayment of borrowings $90 000
$\blacktriangleright$ Interest paid on borrowings $57 000
$\blacktriangleright$ Proceeds from sale of plant $215 000
What is the amount of the cash flows in relation to financing activities of Warner Limited for the reporting period?

• A) Net cash inflow $155 000
• B) Net cash outflow $155 000
• C) Net cash inflow $212 000
• D) Net cash outflow $212 000

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Definitions:

Debits

An entry recorded on the left side of a double-entry bookkeeping system that increases asset and expense accounts, and decreases liability, equity, and revenue accounts.

Journal

A chronological record of all the financial transactions of a business, used for the process of accounting.

Indenting

The process of setting text inwards from the margin to separate sections or emphasize parts of a document.

Capital

Assets with monetary value, including cash and merchandise, that a company utilizes to produce revenue or increase its wealth.