Determining Cash Flows from Financing Activities
Nichols Inc. reported the following amounts on its balance sheet at the end of 2019 and 2018 for equity:
Required:
Assume that Nichols did not retire any stock during 2019, it reported $105,610 of net income for 2019, and any dividends declared were paid in cash. Determine the amounts Nichols would report in the financing section of the statement of cash flows.
Introduction:
Income from Financing Activities represents inflows and outpourings of money coming about because of obligation issuance and financing, the issuance of any new stock, profit installments, and any repurchase of existing stock.
Determine the amounts Nichols would report in the financing section of the statement of cash flows.
Statement of financial activity
Particular | Amount ($) |
Issuance of common stock Paid cash dividend (wn1) |
75,000 (23,110) 51,890 |
Working Note 1
Retained Earning Account
Financial & Managerial Accounting
Corporate Financial Accounting
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