During the current year,Jamison Manufacturing had net income of $15,000 and paid dividends of $8,000.Jamison also borrowed $50,000 on January 1^st and repaid $5,000 of the note during the year.Jamison's net cash flows provided by financing activities is A)$37,000 B)$42,000 C)$50,000 D)$65,000

Question

Quizplus · Accepted Answer

Net cash flows from financing activities include cash inflows from borrowing and cash outflows from repaying debt and paying dividends. Jamison borrowed $50,000, repaid $5,000, and paid $8,000 in dividends. Therefore, the net cash flow from financing activities is $50,000 - $5,000 - $8,000 = $37,000.

During the Current Year,Jamison Manufacturing Had Net Income of $15,000