Husky Company has provided the following information for its most recent year of operation:
Posted: Sat Aug 07, 2021 6:58 am
Cash collected from customers totaled $89,300.
Cash borrowed from banks totaled $31,700.
Cash paid to employees for salaries totaled $32,100.
Cash received from selling Husky common stock to stockholders totaled $41,000.
Cash payments to banks for repayment of money borrowed totaled $7,500.
Cash paid to suppliers totaled $12,500.
Land costing $25,000 was sold for $25,000 cash.
Cash paid for dividends to stockholders totaled $3,300.
How much was Husky's cash flow from financing activities?
A) $72,700.
B) $59,000.
C) $65,200.
D) $61,900.
Answer: D
Explanation: $61,900 = Cash borrowed from banks ($31,700) plus cash received from selling
Husky common stock to stockholders ($41,000) minus cash payments to banks for repayment of
money borrowed ($7,500) minus cash paid for dividends to stockholders ($3,300).
Cash borrowed from banks totaled $31,700.
Cash paid to employees for salaries totaled $32,100.
Cash received from selling Husky common stock to stockholders totaled $41,000.
Cash payments to banks for repayment of money borrowed totaled $7,500.
Cash paid to suppliers totaled $12,500.
Land costing $25,000 was sold for $25,000 cash.
Cash paid for dividends to stockholders totaled $3,300.
How much was Husky's cash flow from financing activities?
A) $72,700.
B) $59,000.
C) $65,200.
D) $61,900.
Answer: D
Explanation: $61,900 = Cash borrowed from banks ($31,700) plus cash received from selling
Husky common stock to stockholders ($41,000) minus cash payments to banks for repayment of
money borrowed ($7,500) minus cash paid for dividends to stockholders ($3,300).