Miller Company purchased treasury stock with a cost of $15,000 during the current year.

During the year, the company paid dividends of $20,000 and issued bonds payable for proceeds of $816,000.

Cash flows from financing activities for the the year total:

a. $811,000 net cash inflow.

b.$5,000 net cash outflow.

c.$781,000 net cash inflow.

d.$796,000 net cash inflow.

Question

Business

Chase Gibbs

16 August, 12:31

Miller Company purchased treasury stock with a cost of $15,000 during the current year.

During the year, the company paid dividends of $20,000 and issued bonds payable for proceeds of $816,000.

Cash flows from financing activities for the the year total:

a. $811,000 net cash inflow.

b.$5,000 net cash outflow.

c.$781,000 net cash inflow.

d.$796,000 net cash inflow.

+1

Answers (1)

Know the Answer?

Morgan Clarke · Answer 1

c.$781,000 net cash inflow.

Explanation:

Cash flow in this situation is given by:

Cash flow = issued bonds payable - treasury stock purchases - paid dividends

Cash flow = $816,000 - $15,000 - $20,000

Cash flow = $781,000

Since the cash flow value is positive, this is a net cash inflow

Therefore, the answer is c.$781,000 net cash inflow.