Indiana Company has the following data available: No dividends were declared or paid for the year ending December 31,2012.
What is the net cash flow from financing activities for the year ended December 31,2012?
A)$20 cash inflow
B)$20 cash outflow
C)$100 cash inflow
D)$120 cash outflow

Question

Indiana Company has the following data available:  No dividends were declared or paid for the year ending December 31,2012.
What is the net cash flow from financing activities for the year ended December 31,2012?
A)$20 cash inflow 
B)$20 cash outflow 
C)$100 cash inflow 
D)$120 cash outflow

Quizplus · Accepted Answer

Since no dividends were declared or paid, there was no cash outflow from financing activities. Hence, the net cash flow from financing activities would be negative, indicating a cash outflow of $20. Therefore, option B is the correct answer.

Indiana Company Has the Following Data Available: No Dividends