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The following selected account balances were taken from ABC Company's accounting records during 2018: January 1,...

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Accounting

The following selected account balances were taken from ABCCompany's accounting records during 2018: January 1, 2018 December31, 2018 Inventory 69,000 35,000 Accounts payable 47,000 41,000Long-term notes payable 165,000 130,000 Income tax payable 11,0007,000 Investments 89,000 68,000 Accounts receivable 77,000 84,000Land 60,000 89,000 Common stock 100,000 175,000 Retained earnings26,000 41,000 The following information was taken from ABCCompany's 2018 income statement: Sales revenue $422,000 Cost ofgoods sold 361,000 Gain on sale of investments 11,000 Income taxexpense 22,000 Net income $ 50,000 Calculate the net cash flow fromfinancing activities for 2018. If your answer is negative, place aminus sign in front of your answer (e.g., -1234).

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4.2 Ratings (655 Votes)

CASH FLOW FROM FINANCING ACTIVITIES $        2,018.00
LONG-TERM NOTES PAYABLE (NET CHANGE) $    (35,000.00) DECREASED NOTES PAYABLE, IT MEANS REPAID NOTES PAYABLE PARTIALLY AND OUTFLOW IN FINANCING ACTIVITIES (130000-165000)
COMMON STOCK(NET CHANGE) $      75,000.00 INCREASED COMMON STOCK, IT MEANS RAISED ADDITIONAL CAPITAL, INFLOW TO THE COMPANY) 175000-100000
DIVIDENT PAID $    (35,000.00)
CASH FROM FINANCING ACTIVITY $        5,000.00
OPENING RETAINED EARNINGS 26000
CURRENT YEAR INCOME 50000
CLOSING BALANCE 76000 A)
GIVEN BALANCE OF RETAINED EARNINGS 41000 B)
DIFFERENCE OF A& B 35000
IT MEANS DIVEDENT PAID TO SHARE HOLDER
IT IS A FINANCING ACTIVITY AND OUTFLOW FROM COMPANY
NOTES
CHANGES IN INVENTORY THESE ITEMS ARE ADJUSTMENT TO IN OPERATING ACTIVITIES
ACCOUNTS PAYABLE
INCOME TAX PAYABLE
ACCOUNTS RECEIVABLE
CHANGES IN LAND IS INVESTING ACTIVITIES

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