Union Corporation issued 40,000 shares of $10 par value common stock for $600,000,purchased 10,000 shares of treasury stock with a par value of $20 for $150,000,and paid $20,000 in cash dividends.Net cash flows from financing activities totaled
A) $0.
B) $430,000.
C) $280,000.
D) ($470,000).

Question

Quizplus · Accepted Answer

The net cash flows from financing activities include cash inflows from issuing stock ($600,000) and cash outflows from purchasing treasury stock ($150,000) and paying dividends ($20,000). Therefore, the net cash flow is $600,000 - $150,000 - $20,000 = $430,000.

Union Corporation Issued 40,000 Shares of $10 Par Value Common