For the year ending December 31,2009 Luther's cash flow from financing activities is:
A)127.1
B)123.2
C)137.3
D)132.6

Question

Quizplus · Accepted Answer

A)Cash flow from financing:
- dividends paid (5.1)
+ sale or (purchase)of stock 57.5*
+ increase in ST borrowing 3.9
+ increase in LT borrowing 70.8
Cash flow from financing 127.1
NI transferred to RE(2006)= NI - Dividends paid = 10.6 - 5.1 = 5.5
sale of stock = Equity(2006)- NI transferred to RE(2006)- Equity(2005)
= 126.6 - 5.5 - 63.6 = 57.5
increase in ST borrowing = chg in notes payable + chg in current portion of LT debt
= (10.5 - 9.6)+ (39.9 - 36.9)= 3.9
increase in LT borrowing = 239.7 - 168.9 = 70.8

For the Year Ending December 31,2009 Luther's Cash Flow from Financing