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Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773

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BuyFindarrow_forward

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
ISBN: 9781337115773
Textbook Problem
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Tidwell Company experienced the following during 20X1:

  1. a. Sold preferred stock for $480,000.
  2. b. Declared dividends of $150,000 payable on March 1, 20X2.
  3. c. Borrowed $575,000 from a bank on a 2-year note.
  4. d. Purchased $80,000 of its own common stock to hold as treasury stock.
  5. e. Repaid 5-year bonds issued for $400,000 that mature and are due in December.

Required:

Prepare the net cash from financing activities section of the statement of cash flows.

To determine

Calculate the net cash flows from financing activities section of the statement of cash flows.

Explanation

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 net cash flows from financing activities is shown in the table below:

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T Company
Cash Flow Statement
For the year ended, 20X1