Total sources of funds are calculated as:
A) operating cash flows + new issues of equity
B) operating cash flows + new issues of equity + new issues of long-term debt
C) operating cash flows + new issues of equity-new issues of long-term debt
D) operating cash flows + new issues of equity-dividend paid to shareholders

Question

Quizplus · Accepted Answer

Total sources of funds include operating cash flows as well as any new issues of long-term debt and equity. Dividends paid to shareholders are not included as sources of funds as they represent a distribution of profits rather than a source of new funding.

Total Sources of Funds Are Calculated As