B is corrent. Financing activities include all cash flows involving liabilities and equity other than operating items. The financing activities are| Bank borrowing | $ 550,000 | | Dividend payment | (600,000) | | Issuance of stock | 250,000 | | Bank loan payment | (450,000) | | Net cash used in financing activities | $(250,000) |
The purchase of real estate ($550,000), sale of investment securities ($500,000), and purchase of machinery and equipment ($125,000) are investing activities. The reduction of accounts receivable ($100,000) and the increase in accounts payable ($200,000) are operating items.A is incorrect. Financing activities include all cash flows involving liabilities and equity other than operating items. The financing activities are| Bank borrowing | $ 550,000 | | Dividend payment | (600,000) | | Issuance of stock | 250,000 | | Bank loan payment | (450,000) | | Net cash used in financing activities | $(250,000) |
The purchase of real estate ($550,000), sale of investment securities ($500,000), and purchase of machinery and equipment ($125,000) are investing activities. The reduction of accounts receivable ($100,000) and the increase in accounts payable ($200,000) are operating items.C is incorrect. Financing activities include all cash flows involving liabilities and equity other than operating items. The financing activities are| Bank borrowing | $ 550,000 | | Dividend payment | (600,000) | | Issuance of stock | 250,000 | | Bank loan payment | (450,000) | | Net cash used in financing activities | $(250,000) |
The purchase of real estate ($550,000), sale of investment securities ($500,000), and purchase of machinery and equipment ($125,000) are investing activities. The reduction of accounts receivable ($100,000) and the increase in accounts payable ($200,000) are operating items.D is incorrect. Financing activities include all cash flows involving liabilities and equity other than operating items. The financing activities are| Bank borrowing | $ 550,000 | | Dividend payment | (600,000) | | Issuance of stock | 250,000 | | Bank loan payment | (450,000) | | Net cash used in financing activities | $(250,000) |
The purchase of real estate ($550,000), sale of investment securities ($500,000), and purchase of machinery and equipment ($125,000) are investing activities. The reduction of accounts receivable ($100,000) and the increase in accounts payable ($200,000) are operating items. |
