Question

Additional short-term borrowings $44,000

Purchase of short-term stock investments 11,100
Cash dividends paid $35,600
Interest paid 17,800

Required:
Compute cash flows from financing activities using the above company information.

Answer 1

Answer: $‭8,400‬

Step-by-step explanation:

Financing cashflow relates to transactions concerning debt and equity as these are the capital vehicles for a company. Dividends concern Equity and so are included as a Cash outflow. Interest however, is classified an operating activity.

Cashflow from financing activities;

= Additional short-term borrowings - Cash dividends paid

= 44,000 - 35,600

= $‭8,400‬