Kanet Company issued common stock for proceeds of $386000 during 2016. The company paid dividends of $80000 and issued a long-term note payable for $95000 in exchange for equipment during the year. The company also purchased treasury stock that had a cost of $15000. The financing section of the statement of cash flows will report net cash inflows of

Question

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The financing section of the statement of cash flows includes cash transactions related to the company's equity and long-term debt. Issuing common stock (an inflow) adds $386,000, paying dividends (an outflow) subtracts $80,000, and issuing a long-term note payable does not affect this section as it is a non-cash transaction for acquiring equipment. Purchasing treasury stock (an outflow) subtracts $15,000. Therefore, the net cash inflows from financing activities are $386,000 - $80,000 - $15,000 = $291,000.

Kanet Company Issued Common Stock for Proceeds of $386000 During