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Kleister Company issues bonds for $100 million and repays a long-term notes payable of $10 million. The company also repurchases its own shares for $12 million and issues stock dividends with a market value of $5 million.Net cash flow from financing activities will be:$78 million net inflow[100 million - 10 million - 12 million](dividends are stock dividends not paid in cash) T/F

Respuesta :

Answer:

TRUE

Explanation:

Kleister Company:

1. Issues bonds for $100 million - INFLOW

2. Repays a long-term notes payable of $10 million. - OUTFLOW

3. The company also repurchases its own shares for $12 million - OUTFLOW

4. Issues stock dividends with a market value of $5 million. - NOT A CASH FLOW

It is therefore true that Net cash flow from financing activities will be: $78 million [100 million - 10 million - 12 million] since the dividends are stock dividends not cash dividends

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