A company has the following payments and receipts during its accounting period. Calculate
The 'financing' cash flow figure for its statement of cash flows, issue of shares £530,000, debenture repaid £40,000, proceeds of a rights issue £130,000, share premium received £160,000, and interest paid £130,000.

Question

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The financing cash flow includes the issue of shares (£530,000), proceeds of a rights issue (£130,000), share premium received (£160,000), and subtracts the debenture repaid (£40,000) and interest paid (£130,000). The calculation is: £530,000 + £130,000 + £160,000 - £40,000 - £130,000 = £780,000.

A Company Has the Following Payments and Receipts During Its