Svengool Inc. financial statements included the following amounts for the current year: $$\begin{array} {| l | r |}
\hline \text { Retired bonds } & \$ 68,000 \
\hline \text { Proceeds from collection of note receivable } & 40,000 \
\hline \text { Dividends received } & 11,000 \
\hline \text { Acquired production machinery } & 59,000 \
\hline \text { Sold treasury stock } & 42,000 \
\hline
\end{array}$$
Based on this information, what is the amount of net cash flows from financing activities?

Question

Svengool Inc. financial statements included the following amounts for the current year: $$\begin{array} {| l | r |} 
\hline \text { Retired bonds } & \$ 68,000 \
\hline \text { Proceeds from collection of note receivable } & 40,000 \
\hline \text { Dividends received } & 11,000 \
\hline \text { Acquired production machinery } & 59,000 \
\hline \text { Sold treasury stock } & 42,000 \
\hline
\end{array}$$ 
Based on this information, what is the amount of net cash flows from financing activities?

Quizplus · Accepted Answer

Net cash flows from financing activities include cash inflows from selling treasury stock ($42,000) and cash outflows from retiring bonds ($68,000). The net cash flow is $42,000 - $68,000 = -$26,000, which is a net outflow.

Svengool Inc Based on This Information, What Is the Amount of Net