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Lexington Company engaged in the following transactions during Year 1, its first year of operations....

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Accounting

Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)

  1. 1) Acquired $3,200 cash from issuing common stock.
  2. 2) Borrowed $2,300 from a bank.
  3. 3) Earned $3,200 of revenues.
  4. 4) Incurred $2,420 in expenses.
  5. 5) Paid dividends of $420.

Lexington Company engaged in the following transactions during Year 2:

  1. 1) Acquired an additional $600 cash from the issue of common stock.
  2. 2) Repaid $1,370 of its debt to the bank.
  3. 3) Earned revenues, $4,600.
  4. 4) Incurred expenses of $2,790.
  5. 5) Paid dividends of $760.

What is the net cash flow from financing activities on Lexington's statement of cash flows for Year 2?

  • $160 outflow

  • $1,530 outflow

  • $1,530 inflow

  • $160 outflow

  • $600 inflow

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