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Question

Usama Ali Khan Company experienced the following at end of year, December 2017:

Required: Calculate the Net Cash Flow From Financing Activities.


A

235000

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B

255000

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C

270000

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D

265000

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Solution

The correct option is B

255000


Net Cash Flow From Financing Activities = Rs. 2,55,000
Cash flows from Financing Activities:Issued preferred stock250,000Repurchased of its own common stock140,000Borrowed from a bank issuing a 5–year note200,000Retired bonds55,000Net Cash Flow from Financing Activities255,000


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