Cole Company began operations on January 1,2011 During 2011. the company engaged

ID: 2475972 • Letter: C

Question

Cole Company began operations on January 1,2011 During 2011. the company engaged in the following cash transactions: 1) issued stock for $30,000 2) borrowed $24,000 from its bank 3) sold merchandise tor $28,500 4) paid back $10,100 of the bonk loan 5) paid rent expense for $2,150 6) purchased equipment costing $5,150 7) paid $3,000 dividends to stockholders 8) paid employees salaries. $11,100 What is Cole's cash flow from financing activities? Inflow of $45.850 Outflow of $15,250 Inflow of $40,900 Outflow of $5,150

Explanation / Answer

Cole Company

Statement of Cash Flows

For the Years Ending

Particulars

$ 2,011

Issued Stock

$ 30,000

Borrowed from Bank

$ 24,000

Total Inflow

$ 54,000

Less: Paid back to Bank

$ (10,100)

Less: Paid dividend

$ (3,000)

Total outflow

$ (13,100)

Net Inflow

$ 40,900