For the year ended December 31, 2016, Kennel Company reported short-term borrowings of $2,500,000, long-term borrowings of $6,800,000, repayments of long-term borrowings of $3,500,000, interest payments of $780,000, purchase of treasury shares of $500,000, cash dividends declared of $1,100,000, and cash dividend payments of $800,000. Kennel also issued its common stock in exchange for a building costing $400,000.
Required:
A.Prepare the financing activities section of the Kennel Company cash flow statement for the year ended December 31, 2016.
B.Is the net cash flow for investing activities a net cash inflow, or a net cash outflow? Briefly describe the reason for your answer.

Question

Quizplus · Accepted Answer

The Answer of For the year ended December 31, 2016, Kennel Company reported short-term borrowings of $2,500,000, long-term borrowings of $6,800,000, repayments of long-term borrowings of $3,500,000, interest payments of $780,000, purchase of treasury shares of $500,000, cash dividends declared of $1,100,000, and cash dividend payments of $800,000. Kennel also issued its common stock in exchange for a building costing $400,000.
Required:
A.Prepare the financing activities section of the Kennel Company cash flow statement for the year ended December 31, 2016.
B.Is the net cash flow for investing activities a net cash inflow, or a net cash outflow? Briefly describe the reason for your answer.

For the Year Ended December 31, 2016, Kennel Company Reported