Flow Company Has Provided the Following Information for the Year

question 105

Multiple Choice

Flow Company has provided the following information for the year ended December 31, 2016: • Cash paid for interest, $20,000
• Cash paid for dividends, $6,000
• Cash dividends received, $4,000
• Cash proceeds from bank loan, $29,000
• Cash purchase of treasury stock, $11,000
• Cash paid for equipment purchase, $27,000
• Cash received from issuance of common stock, $37,000
• Cash received from sale of land with a $32,000 book value, $25,000
• Acquisition of land costing $51,000 in exchange for preferred stock issuance
• Payment of a $100,000 note payable by exchanging used machinery with a $77,000 book value and $100,000 fair value
How much was Flow's net cash flow from financing activities?

• A)A net outflow of $51,000.
• B)A net inflow of $29,000.
• C)A net outflow of $53,000.
• D)A net inflow of $49,000.

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Definitions:

Market Price

The amount of money a buyer is willing to pay and a seller is willing to accept for a good or service in a competitive market.

Shortage

A market condition in which the demand for a product or service exceeds its supply, often leading to higher prices.

Binding Price Ceiling

A government-imposed price limit on goods or services that is set below the market equilibrium price, leading to shortages.

Price Paid

The amount of money exchanged for a good or service in a transaction.