Question

The following accounts, among others, appeared on ZZ Company's balance
sheet at January 1, 2020 and December 31, 2020:

                  January 1, 2020       December 31, 2020

Accounts receivable    48,000                63,000
Utilities payable      20,000                26,000
Notes payable          71,000                80,000
Common stock           30,000                90,000
Retained earnings      22,000                78,000

The following information was taken from ZZ Company's 2020 income
statement:

Sales revenue                   $500,000
Cost of goods sold               280,000
Other expenses                   120,000
Net income                      $100,000

Calculate the net cash flow from financing activities for 2020. If
your answer is negative, place a minus sign in front of your answer
with no spaces in between (e.g., -1234).

Answer 1

Answer- The net cash flow from financing activities for 2020 is = $25000.

Explanation-

ZZ COMPANY
STATEMENT OF CASH FLOWS PARTIAL (USING INDIRECT METHOD)
FOR THE YEAR ENDED DECEMBER 31,2020
Particulars		Amount
		$
Cash Flow from Financing activities
Notes payable issued	($80000-$71000)	9000
Common stock issued	($90000-$30000)	60000
Cash dividends paid	($22000+$100000-$78000)	-44000
Net cash Flow from Financing activities		25000