What is the financing cash flow, given the following information?
$\begin{array}{lrr}
\text { Net income} &\$550\
\text {Depreciation } &\$60\
\text { Issuance of new stock} &\$25\
\text { Repayment of long-term debt } &\$30\
\text {Sale of old equipment } &\$45\
\text { Purchase of new equipment} &\$65\
\text { Dividend payments} &\$70\
\text { Interest payments} &\$100\
\end{array}$

A)-$180
B)-$150
C)-$110
D)(?)$75
E)(?)$10

Question

What is the financing cash flow, given the following information?
$\begin{array}{lrr}
  \text {  Net income} &\$550\
 \text {Depreciation  } &\$60\
 \text {  Issuance of new stock} &\$25\
 \text { Repayment of long-term debt } &\$30\
 \text {Sale of old equipment  } &\$45\
 \text {  Purchase of new equipment} &\$65\
 \text {  Dividend payments} &\$70\
 \text {  Interest payments} &\$100\
\end{array}$

A)-$180
B)-$150
C)-$110
D)(?)$75
E)(?)$10

Quizplus · Accepted Answer

Financing cash flow includes issuance of new stock, repayment of long-term debt, and dividend payments. Thus, it is calculated as: Issuance of new stock ($25) - Repayment of long-term debt ($30) - Dividend payments ($70) = $25 - $30 - $70 = -$75.

What Is the Financing Cash Flow, Given the Following Information