McLaughlin Company issued common stock for proceeds of $558,000 during 2022.The company paid dividends of $99,000 and issued a long-term note payable for $375,000 in exchange for equipment during the year.The company also purchased treasury stock that had a cost of $81,000.The financing section of the statement of cash flows will report net cash inflows of
A)$378,000.
B)$834,000.
C)$459,000.
D)$753,000.

Question

Quizplus · Accepted Answer

The net cash inflows from financing activities are calculated as proceeds from issuing common stock ($558,000) minus dividends paid ($99,000) minus the purchase of treasury stock ($81,000), resulting in $378,000. The issuance of a long-term note payable for equipment is a non-cash transaction and does not affect cash flows.

McLaughlin Company Issued Common Stock for Proceeds of $558,000 During