Consider the following information relating to Interceptors Ltd. What must cash flow from financing have been in 2008 for Interceptors Ltd.?
A)$5
B)$28
C)$30
D)$33

Question

Consider the following information relating to Interceptors Ltd.  What must cash flow from financing have been in 2008 for Interceptors Ltd.?
A)$5 
B)$28 
C)$30 
D)$33

Quizplus · Accepted Answer

To calculate the cash flow from financing in 2008, we need to subtract the change in debt from the change in cash dividends paid. The change in debt is calculated by subtracting the debt balance in 2008 from the debt balance in 2007, which is $(30-20) = $10. The change in cash dividends paid can be calculated from the statement of cash flows as $(15 - 12) = $3. Therefore, the cash flow from financing must be $10 - $3 = $7. However, this calculation only considers long-term debt and dividends paid to shareholders. The answer choices provided do not align with this explanation. Therefore, the correct answer cannot be determined with the information given.

Consider the Following Information Relating to Interceptors Ltd