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31 July, 20:43

Net income was $477,000. Issued common stock for $71,000 cash. Paid cash dividend of $15,000. Paid $115,000 cash to settle a note payable at its $115,000 maturity value. Paid $120,000 cash to acquire its treasury stock. Purchased equipment for $93,000 cash. Use the above information to determine cash flows from financing activities. (Amounts to be deducted should be indicated with a minus sign.)

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  1. 31 July, 21:58
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    ($179,000)

    Explanation:

    The computation of the cash flows from financing activities is shown below:

    Cash flows from financing activities:

    Common stock issuance $71,000

    Less: Cash dividends paid - $15,000

    Less: Payment of note payable - $115,000

    Less: Purchase of treasury stock - $120,000

    Net cash flows from financing activities ($179,000)

    The negative sign shows the outflow of cash and the positive sign shows the cash inflow and the same is shown above
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