During 2018, T Company engaged in the following activities: Distribution of cash dividends declared in 2017 $ 48 Fair value of shares issued in a stock dividend 220 Payment to retire bonds 452 Proceeds from the sale of treasury stock (cost: $52) 60 In T's statement of cash flows, what were net cash outflows from financing activities for 2018?

a. $392. b. $440. c. $560. d. $732.

Question

Business

Kyle Cannon

2 February, 19:54

During 2018, T Company engaged in the following activities: Distribution of cash dividends declared in 2017 $ 48 Fair value of shares issued in a stock dividend 220 Payment to retire bonds 452 Proceeds from the sale of treasury stock (cost: $52) 60 In T's statement of cash flows, what were net cash outflows from financing activities for 2018?

a. $392. b. $440. c. $560. d. $732.

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Answers (1)

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Kamari Duncan · Answer 1

net cash outflows from financing activities = 440

so correct option is b. $440

Explanation:

given data

Fair value = $48

stock dividend = 220

retire bonds = 452

sale of treasury stock = 60

cost = $52

to find out

net cash outflows from financing activities

solution

we get here net cash outflows from financing activities that is express as

net cash outflows from financing activities = Fair value + retire bonds - sale of treasury stock ... 1

put here value we get

net cash outflows from financing activities = $48 + $452 - $60

net cash outflows from financing activities = 440

so correct option is b. $440