Figure 15-1.Master Company's net income last year was $88,000 and cash dividends declared and paid to the company stockholders was $60,000. Changes in selected balance sheet accounts for the year appear below:

-Refer to Figure 15-1. The net cash flows from financing activities last year was
A) $80,000.
B) $(80,000).
C) $20,000.
D) $(20,000).

Question

Figure 15-1.Master Company's net income last year was $88,000 and cash dividends declared and paid to the company stockholders was $60,000. Changes in selected balance sheet accounts for the year appear below:
 
-Refer to Figure 15-1. The net cash flows from financing activities last year was
A) $80,000. 
B) $(80,000). 
C) $20,000. 
D) $(20,000).

Quizplus · Accepted Answer

The net cash flows from financing activities are negative, indicated by the parentheses, which means there was a net outflow of $80,000.