Asked by Madison Katelyn on Jun 07, 2024
Verified
For the year ended December 31,2019,Kennel
Company reported short-term borrowings of $2,500,000,long-term borrowings of $6,800,000,repayments of long-term borrowings of $3,500,000,interest payments of $780,000,purchase of treasury shares of $500,000,cash dividends declared of $1,100,000,and cash dividend payments of $800,000.Kennel also issued its common stock in exchange for a building costing $400,000.
A.Prepare the financing activities section of the Kennel
Company cash flow statement for the year ended December 31,2019.
B.Is the net cash flow for financing activities a net cash inflow,or a net cash outflow? Briefly describe the reason for your answer.
Financing Activities
Transactions that involve raising capital (e.g., issuing stock or bonds) and repaying investors (e.g., dividends, loan repayments).
Short-Term Borrowings
Loans and other forms of financial indebtedness that are due for repayment within one year or less.
- Assess the cash transactions stemming from financing activities.
Verified Answer
ZK
Zybrea KnightJun 07, 2024
Final Answer : 
B.When more net cash is provided by or received during a period,rather than used or spent for financing activities,then net cash provided by financing activities is a net cash inflow.
B.When more net cash is provided by or received during a period,rather than used or spent for financing activities,then net cash provided by financing activities is a net cash inflow.
Learning Objectives
- Assess the cash transactions stemming from financing activities.