Table 17-7
The accounting records of McKal Chocolates Ltd. reveal the following:

-Refer to Table 17-7.Assume that McKal Chocolates Ltd.used the direct-method to prepare their cash flow statement.What would be the net cash flow from financing activities?
A) ($135,900)
B) ($145,900)
C) ($140,900)
D) ($10,000)

Question

Table 17-7
The accounting records of McKal Chocolates Ltd. reveal the following:
 
-Refer to Table 17-7.Assume that McKal Chocolates Ltd.used the direct-method to prepare their cash flow statement.What would be the net cash flow from financing activities?
A) ($135,900) 
B) ($145,900) 
C) ($140,900) 
D) ($10,000)

Quizplus · Accepted Answer

D) Only the payment of dividends has an effect on cash. The share issuance was for a noncash asset - warehouse.

Table 17-7 The Accounting Records of McKal Chocolates Ltd. Reveal the Following