Question

Kanet Company issued common stock for proceeds of $386,000 during 2017. The company paid dividends of $80,000 and issued a long-term note payable for $95,000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $15,000. The financing section of the statement of cash flows will report net cash inflows of $Placeholder for missing word.

Answer 1

Answer:

The financing section of the statement of cash flows will report net cash inflows of $291,000

Explanation:

Cash receipts from issuance of shares: 386,000

Cash used to paid dividends (80,000)

Cash used to purchase treasury stock (15,000)

Total Cash generated for Financing Activities 291,000

Notice: The long-term note payable doesn't involve cash used or generate so it is not relevant for the cash flow statement. The note is done to purchase an equipment, no cash