• 25,000 shares of preferred stock, cumulative, 5%, $40 par was issued for $60/share. • The annual cash dividend was declared and paid to the above preferred stock. • The company purchased 12,000 shares of common stock at $68 per share to be held as Treasury stock. • Interest of $32,000 was paid to bondholders. • Bonds Payable with a par value of $400,000 were retired at $432,000. Compute the net cash flow from financing activities (parentheses indicate an outflow).

$202,000

Explanation:

Computation of Net Cash Generated From Financing Activities

Cash generated from the preferred stock (25,000 * $60)      $1500,000

Less: Preferred stock Dividend  (25000 * $40 par * 5%)         ($50,000)

Less: Treasury stock (12,000 shares * $68 per share)             ($816,000)

Less: Interest Payments                                                              ($32,000)

Less: Bond Redemption (Interest Exclusive)                            ($400,000)

Net Cash Generated From Financing Activities                        $202,000

answer; ///i believe that the correct answer is (a) it is the means by which a person earns money;

a

b

b

a

c

b

d

d

none of these are correct, as they are all sources of american law

a