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12 November, 21:36

The following transactions were made by Ruby Inc. last year:

Issuance of common stock $100,000

Dividends paid to the company's stockholders $2,000

Depreciation expense $6,000

Repayment of principal on bonds $40,000

Proceeds from the sale of the company's used equipment $39,000

Purchase of land $230,000

Based solely on the above information, net cash flow from financing activities for the year on the statement of cash flows would be:

a. $150,000 b. $67,000 c.$ 58,000 d. $29,000

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  1. 13 November, 00:27
    0
    OPtion (C) is correct.

    Explanation:

    Given that,

    Issuance of common stock = $100,000

    Dividends paid to the company's stockholders = $2,000

    Depreciation expense = $6,000

    Repayment of principal on bonds = $40,000

    Proceeds from the sale of the company's used equipment = $39,000

    Purchase of land = $230,000

    Cash flow from financing activities:

    = Issuance of common stock - Dividends paid to the common stockholders - Repayment of principal on the company's own bonds

    = $100,000 - $2,000 - $40,000

    = $58,000

    Therefore, the net cash inflow from financing activities is $58,000.
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