Cline Company issued ordinary shares for proceeds of $392,000 during 2014. The company paid dividends of $66,000 and issued a non-current note payable for $90,000 in exchange for equipment during the year. The company also purchased treasury shares that had a cost of $14,000. The financing section of the statement of cash flows will report net cash inflows of

Question

Quizplus · Accepted Answer

The net cash inflows from financing activities are calculated as proceeds from issuing shares ($392,000) minus dividends paid ($66,000) minus the purchase of treasury shares ($14,000), resulting in $312,000. The issuance of a note payable for equipment is a non-cash transaction and does not affect cash flows.

Cline Company Issued Ordinary Shares for Proceeds of $392,000 During