Jackson Company reported selected accounts as follows: Dividends of $8,800 were declared for the year ended December 31,2011.What was the net cash flow from financing activities for the year ended December 31,2011?

Question

Jackson Company reported selected accounts as follows:  Dividends of $8,800 were declared for the year ended December 31,2011.What was the net cash flow from financing activities for the year ended December 31,2011?

Quizplus · Accepted Answer

Dividends being declared is a financing activity and it is a cash outflow. Therefore, the net cash flow from financing activities would be the amount of dividends declared ($8,800) as a cash outflow, resulting in a net cash outflow of $16,800 (B).

Jackson Company Reported Selected Accounts as Follows: Dividends of $8,800