Given the following financial statements for ACME Corporation,and assuming that ACME paid a common dividend of $80,000 in 2010,what is the company's financing cash flow for 2010?

Question

Quizplus · Accepted Answer

We can find the financing cash flow by subtracting the cash flow from operations and the cash flow from investing from the change in cash and cash equivalents. 
Change in cash and cash equivalents = $5,000 - $55,000 = -$50,000 
Financing cash flow = -$50,000 - (-$80,000) = -$30,000 
Therefore, the financing cash flow for 2010 is -$30,000. However, the question is asking for the financing cash flow including the common dividend paid, which is $80,000. 
Financing cash flow = -$30,000 + $80,000 = -$50,000 
Therefore, the correct answer is D) -$70,000.

Given the Following Financial Statements for ACME Corporation,and Assuming That