Calculate cash inflow (outflow) from financing activities given the following information: acquisition of business operations $925; disposal of property $605; disposal of intangible asset $175; interest received $80; proceeds of share issue $1,400; repayment of loan $195; dividends paid $200.

Question

Quizplus · Accepted Answer

- Acquisition of business operations: outflow of $925, 
- Disposal of property: inflow of $605, 
- Disposal of intangible asset: inflow of $175, 
- Interest received: inflow of $80, 
- Proceeds of share issue: inflow of $1,400, 
- Repayment of loan: outflow of $195, 
- Dividends paid: outflow of $200.

Net cash inflow from financing activities = $605 + $175 + $80 + $1,400 - $195 - $200 = $1,865 - $395 = $1,395. Therefore, the answer is choice C.

Calculate Cash Inflow (Outflow) from Financing Activities Given the Following