Ask Question
24 April, 19:07

Smith Law Firm specializes in the preparation of wills for estate planning. On October 1, 2021, the company begins operations by issuing stock for $12,000 and obtaining a loan from a local bank for $24,000. By the end of 2021, the company provides will preparation services of $31,000 cash and pays employee salaries of $22,000. In addition, Smith pays $1,900 in cash dividends to stockholders on December 31, 2021. Determine the amount of financing cash flows Smith would report in 2021.

+1
Answers (1)
  1. 24 April, 20:40
    0
    Cash flow from financing $34,100

    Explanation:

    The amount of financing cash flows that Smith would report in year 2021 is as follows:

    Issuance of stock by Smith law firm $12,000

    Loan from local bank $24,000

    Dividends paid to stockholders ($1,900)

    Cash flow from financing $34,100
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Smith Law Firm specializes in the preparation of wills for estate planning. On October 1, 2021, the company begins operations by issuing ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers