Below are several transactions for Louisville Company: $$\begin{array} { l r }
\text { Proceeds from issuance of bonds payable } & \$ 635,000 \
\text { Payment to purchase equipment } & 275,000 \
\text { Payment of wages } & 115,000 \
\text { Payment of dividends } & 155,000 \
\text { Payment to pay off notes payable } & 195,000
\end{array}$$Based on these transactions,what is the net cash flow from financing activities?

Question

Below are several transactions for Louisville Company: $$\begin{array} { l r } 
\text { Proceeds from issuance of bonds payable } & \$ 635,000 \
\text { Payment to purchase equipment } & 275,000 \
\text { Payment of wages } & 115,000 \
\text { Payment of dividends } & 155,000 \
\text { Payment to pay off notes payable } & 195,000
\end{array}$$Based on these transactions,what is the net cash flow from financing activities?

Quizplus · Accepted Answer

Financing activities include the proceeds from issuance of bonds payable ($635,000) and the payment of dividends ($155,000). The net cash flow from financing activities is $635,000 - $155,000 = $480,000. However, there seems to be a mistake in my calculation as none of the options match this result. Based on the options provided, the closest correct interpretation of financing activities would include considering payments to pay off notes payable as a financing activity. Thus, the correct calculation considering the options would be $635,000 (proceeds from bonds) - $155,000 (dividends) - $195,000 (notes payable) = $285,000, which matches option A.

Below Are Several Transactions for Louisville Company Based on These Transactions,what Is the Net Cash Flow from r