Use the table for the question(s)below.
Consider the following income statement and other information:

-Which of the following adjustments is NOT correct if you are trying to calculate cash flow from financing activities?
A)Add dividends paid
B)Add any increase in long term borrowing
C)Add any increase in short-term borrowing
D)Add proceeds from the sale of shares

Question

Use the table for the question(s)below.
Consider the following income statement and other information:
 
-Which of the following adjustments is NOT correct if you are trying to calculate cash flow from financing activities?
A)Add dividends paid 
B)Add any increase in long term borrowing 
C)Add any increase in short-term borrowing 
D)Add proceeds from the sale of shares

Quizplus · Accepted Answer

Dividends paid should be subtracted, not added, when calculating cash flow from financing activities.

Use the Table for the Question(s)below