Swasey Company earned net income of $1,800,000 in 20X2. Swasey provided the following information:
Required:
Compute the financing cash flows for the current year.
Calculate the financing cash flows for the current year.
Cash Flows from Financing Activities:
This category of a cash flow statement includes those activities which help a company to raise cash from creditors and owners. Financing activities basically show those activities that are required to fund a company.
The calculation of financing cash flows for the current year is shown in table below:
S Company | |
Cash Flow Statement | |
Financing Cash Flows: | |
Particulars | Amount ($) |
Issuance of bonds payable | 770,000 |
Payment of mortgage | (200,000) |
Payment of dividends1 | (800,000) |
       Net cash from financing activities | (230,000) |
Table (1)
Therefore, net cash flow from financing activities is $(230,000).
Working Note:
1...
Intermediate Accounting: Reporting And Analysis
Financial And Managerial Accounting
Financial Accounting
Corporate Financial Accounting
College Accounting, Chapters 1-27
Financial & Managerial Accounting
Accounting Information Systems
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Essentials of Economics (MindTap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Contemporary Marketing
Accounting Information Systems
Fundamentals of Financial Management (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Essentials of Business Communication (MindTap Course List)
Foundations of Business (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
Management, Loose-Leaf Version
MKTG 12:STUDENT ED.-TEXT
Principles of Macroeconomics (MindTap Course List)
Principles of Economics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Financial Accounting
Financial & Managerial Accounting
College Accounting (Book Only): A Career Approach
Accounting (Text Only)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Statistics for Business & Economics, Revised (MindTap Course List)
Exploring Economics
College Accounting (Book Only): A Career Approach
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Fundamentals of Financial Management (MindTap Course List)
Pkg Acc Infor Systems MS VISIO CD
Principles of Macroeconomics (MindTap Course List)
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Survey of Accounting (Accounting I)
Corporate Financial Accounting
Economics For Today
Microeconomics
Cornerstones of Cost Management (Cornerstones Series)
Macroeconomics
Practical Management Science
Economics (MindTap Course List)
Purchasing and Supply Chain Management